I'll get straight to the point so that you completely understand how I trade this method. First you must know what a pin bar is. If not you should really look at some pictures but I will explain quick. A pin bar has a long tail and a short body. There is 4 different pin bars but I won't touch on that.
The pin bars we are looking for are the kind that form at the top or bottom of a trend. After you spot one of these pin bars you want to see if it closed near any support or resistance lines.
If a pin forms after a trend up then we would look to go short if it closes near resistance. If the pin forms after a down trend and it is near support then look to go long. That's the system, that alone is how I put over 600 pips under my belt this year.
I like it because its so simple and the trades are really easy to spot. It takes me 10 minutes a day to flick through all my charts and adjust any open trades. Only ten minutes a day people, why does anybody sit in front of their computer scalping all day?
The key to doing well with pin bars is only using them near support and resistance. I consider trend lines, chart patterns, pivot points, and key chart levels all support and resistance areas. The best setups are when multiple things line up all at once. Those are the high probability trades, and the ones you can throw some extra dough into.
This pin bar strategy is only profitable if you trade it properly. Don't trade every pin bar you see, Use proper money management, and follow through with trades you take. Sometimes a trade will be in loss for a couple days before it goes in your favor.
I forgot to tell you about stop loss and take profit. Good risk to reward is the key to any profitable strategy. Ask any of the 5% of people that make money trading if they risk more than they make. They would probably laugh in your face.
So for this pin bar strategy your stop loss will be above the high or low of the pin and take profit at two times what you are risking, or a key price level. If your short then aim for a support line, and if your long then aim for a take profit at resistance levels.
If you constantly risk half of what you make on trades then technically you could lose 2 out of 3 trades and still break even. That's not including the spread or other factors. Sometimes you won't be able to aim for twice your risk but others you will be able to shoot for three or four times!
I just took a trade on gold today and I didn't even set a take profit, this trade could make serious money if the trend keeps going up. Barely any risk and a whole lot of reward. Play your trades smart guys. Take profits when you have to, and let profits build when the time is right.
The pin bars we are looking for are the kind that form at the top or bottom of a trend. After you spot one of these pin bars you want to see if it closed near any support or resistance lines.
If a pin forms after a trend up then we would look to go short if it closes near resistance. If the pin forms after a down trend and it is near support then look to go long. That's the system, that alone is how I put over 600 pips under my belt this year.
I like it because its so simple and the trades are really easy to spot. It takes me 10 minutes a day to flick through all my charts and adjust any open trades. Only ten minutes a day people, why does anybody sit in front of their computer scalping all day?
The key to doing well with pin bars is only using them near support and resistance. I consider trend lines, chart patterns, pivot points, and key chart levels all support and resistance areas. The best setups are when multiple things line up all at once. Those are the high probability trades, and the ones you can throw some extra dough into.
This pin bar strategy is only profitable if you trade it properly. Don't trade every pin bar you see, Use proper money management, and follow through with trades you take. Sometimes a trade will be in loss for a couple days before it goes in your favor.
I forgot to tell you about stop loss and take profit. Good risk to reward is the key to any profitable strategy. Ask any of the 5% of people that make money trading if they risk more than they make. They would probably laugh in your face.
So for this pin bar strategy your stop loss will be above the high or low of the pin and take profit at two times what you are risking, or a key price level. If your short then aim for a support line, and if your long then aim for a take profit at resistance levels.
If you constantly risk half of what you make on trades then technically you could lose 2 out of 3 trades and still break even. That's not including the spread or other factors. Sometimes you won't be able to aim for twice your risk but others you will be able to shoot for three or four times!
I just took a trade on gold today and I didn't even set a take profit, this trade could make serious money if the trend keeps going up. Barely any risk and a whole lot of reward. Play your trades smart guys. Take profits when you have to, and let profits build when the time is right.
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