PinBar Price Action pattern

 

The Pin Bar reversal is without a doubt one of the most powerful and reliable price action trading signals that can be traded across many different markets and time frames.

Dr Isaac Ade September 20, at 3:

What is a Pin Bar?

Pin Bar, which is short for ‘Pinocchio Bar,’ is a single candlestick setup that clues price action traders into potential reversals in the market. A pin bar is an elongated wick that ‘sticks.

For example, bullish pin bar with a bullish close is more valid and likewise, a bearish pin bar with a bearish candlestick is more valid. While pin bars can form anywhere on the chart, they are considered a strong pattern when pin bars are formed near support and resistance levels.

Pin bars can also be commonly formed near a moving average as well as trend lines. Pin bars are valid across all time frames, but of course, a pin bar on a weekly or daily charts take more precedence than pin bars formed on lower time frames. The chart above shows a pin bar rejection near a previously known support level.

Notice how price constantly bounces off the support level subsequently. The identification of the pin bar at the support level shows that it is a strong level of buyers reflected by the long wicks. In this case, the pin bar is even more valid as the bullish pin bar also has a bullish close twice.

If you were to trade based off support and resistance, the appearance of the pin bar is reason enough to take long positions when price revisits the previously rejected price near the support zone.

In the next chart above, we get to see an example of a bearish pin bar. Again, it is more valid because the body of the pin bar is also in the same bearish bias as well. A second test of the resistance level after the first pin bar was formed held and a third attempt was made which formed in a weaker form of the pin bar and prices subsequently dropped lower. In Figure 5, we have an example of trading trend lines with pin bar confirmation. Here, we first plotted a down sloping falling resistance line connecting the first two lows.

As price continues to fall further with the trend line acting as resistance, towards the end, we notice a strong bullish pin bar. This tells us that while prices were pushed lower, the buyers out numbered the sellers, leaving a long lower wick. Eventually, a few candles later, price broke out of the falling trend line to rally. But don't just read our analysis - put it to the rest.

Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. You can manage you subscriptions by following the link in the footer of each email you will receive. Traders will usually look for one-sided wicks that are two times the size of the candlesticks body. When traders see elongated wicks sticking out from price action, they can look for the momentum that created the long wick to continue by looking for a reversal.

So if a trader sees a long wick sticking out below price action; they can look to go long. If a trader sees a long wick sticking out above price action, they may want to look to go short. But not all long wicks are created equal. If the long wick sticks out from recent prices, that is a Pin Bar. That a movement to a previously untested level has brought a new group of buyers or sellers in the case of a bearish Pin Bar. With a genuine pin bar leaving a long wick above the candle, traders could look to open a short position to take part in the momentum that created the long wick in the first place.

However, as you can see from the above setup — that would not have worked out too well. Trading Fake Pin Bars requires additional analysis, as the signal of a short-term reversal in prices may not be as consistent as that of a genuine pin bar.

The first thing we want to get comfortable with when looking for Pin Bars, or Fake Pin Bars, is what it is that we are looking to take part in by trading that setup.

From the above graphic, we can see what makes the pin bar attractive is the fact that price has reversed enough to leave a long wick exposed underneath price action all taking place during the pin bar candle. This might mean that the potential for a reversal on fake pin bars could be smaller than that of genuine pin bars. We can do this by looking at the trend of the currency pair, and attempting to enter ONLY in the direction of the longer term trend.

Traders can even use price action analysis to qualify and analyze trends, much like we looked at in our Introduction to Price Action. Even as a young trader I have quickly realize that the best way to trade the market is by price action. This bin bar strategy as confirm my belief. I think this bin bar strategy would be vary effective when use with trend line and channel line. Thank you very much. I never thought that trading can be learnt…. I changed my opinion on that… thanq … nial fuller sir.

Thank you dear Sir you are really unique person in teaching forex trading in simple way, Thankx a lot. I see possibilities all the way, im so enlightened and excited about trading forex. Words are not enough to express my gratitude Sir. What set up do you typically find the most profitable — the pin bar, inside bar or the fakey?

You enter half way through a pin bar at the next candle, right? I noticed some people enter below for shorts or above for longs. I suppose entering half way would enable smaller stops. Mr Fuller, I have to say thank you for making this newbie experience so exciting and interesting. You are honest, sometimes it hurts a bit but truly it is very eye-opening. I have been reading your articles for a few weeks now but I am learning so much already and each article is encouraging and extremely informative!

Thank you Mr… I look forward to this journey. Thanks nial,very well define on pin bar for price action strategy. This is a great signal for entry. I am a newbee to forex investing, i am at the point of gathering information to make sence of the whole forex trading. I must say you are the Guru. Your website is finally the end of my searching for information. Your begginers trainig guide is so easy and simply to understand and i love the way you presented the ideas in topics.

It makes so much sence as i go along. May God continue to guide and protect you and give you more Knowledge and wisdom. You are indeed a great teacher. God bless u in abundance…… Ur the best Web Teacher. Hi Nial, Another very good article to learn from in your clear concise format. Looking forward to read more of your publications on my Email.

Dr Isaac A A. Nial, your lecture on pin-bar strategy lecture is very unique and self explanatory. It gave me insight to how those. Good tutorials and explained very good. Will keep coming back to this website. Particularly interested in trading on pin bar formations. I tried and make some money with forex and getting very interested about forex now! After reading about half a dozen books and watching countless videos about different forex systems , methods and strategies , I have come to conclusion that pure price action is the way to go when trading forex and will be enrolling in your course.

Sir, I have a huge respect for you, you are the most kind n intellectual person I have ever seen: What an amazing technique. What broker do you use? Is there a broker whose platform shows candles begining at Asian session and closing at the close of US session? I can tell that this is one of the best article you can find about the price action trading strategy.

I had a hard time when I was first interested in forex trading, enough to run away from ever trading. Thanks for so powerfull teaching whit pin s bars. I want to know where i can read your answerd to all the questionr you receive? Thanks for all your tips. Your professionalism and knowledge will serve the trading community well.

I look forward to your e-mails…. This ol 72 yrs ex wheeler is becoming one proud and appreciative trader. In fact, they are littered everywhere on the chart platforms. Thank you very much Nial Fuller. I am new in forex trading. I will make full use of this course and tips given by you. We see the third bar already breaks that point above or below, but it is still on the way to be formed, not completed yet….

This new member recently emailed you for guidance structure on how to best use the provided course materials. Your email response was fast, detailed and specific.

Wish more businesses were like this!!!! Thank you so much. Many time, I wonder about pin bar. How to trade with pin bar set up,so far I know about pin bar. I appreciate for that. Nial, Thanks for the article. Do you find the pin-bars on the hourly work as good on a 4 hourly and daily charts?

I am impressed with your knowledge of the forex market and your clear explanations of price action. I am a new trader that has decided to focus on the forex market. I promised myself not to waste anymore money on information and schools but I am close to making an exception for you. I realize that I must have a mentor that knows what he is doing. I have lost approx.

I usually learn things the hard way. I am determined to become a profitable trader. I just started trading the pinbar after reading about it on this site. Finally now I have a clear picture of what it is and understand how to benefit from it. Thanks for the article in pin bar set. I begin to see more clearly the price action and begin to make more pips now. Im just heard this trading with price action.. Hello Nial, though I am very newbie to forex I really understand your tutorial very well.

It is clearly explained and it met all the points. Once again thanks for your tutorial. Thank you for sharing this simple and effective pin bar technical analysis. I am so benefit from it. Thanks Nial,for going into detail on how the pin bar is to be traded. Now to apply it to my new way of trading for me that is.

Trading the bigger time frames has put me at ease on trading. It has allowed me to have a plan finally.

A well-written very clear article on this strategy. I will try and identify it when I next look at a price chart and see how it turns out. Your email address will not be published. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.

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