How I take pin bars(reply to Cozard007)
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Thread: How I take pin bars(reply to Cozard007)

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    How I take pin bars(reply to Cozard007)

    I am writing this thread in other to reply and explain something to Cozard007, and I believe that we all can learn as well.

    Quote Originally Posted by cozard007 View Post
    Well, if it is the pin bar you are using to get the signal, it is a 50/50 trading affair. It means that you have 50% chance of losing or winning that trade. In that case, it would be very unwise for you to take high risk. There are certainly some times the trader would risk higher, but the percentage of assurance should be more than 80%.
    .

    Pin bar are good signals but then I always analyze it and gauge it before trading, here is some example.

    Usually before I take pin bars, I always ensure waiting for a confirmations candle and the confirmation candle has a lot to say too.
    EURUSDDaily.png

    On the screen shot, EurUsd is on the up trend and formed a bullish pin bar, by candle 1. It is very strong because the body is more than times 4 of the tail, shadow or wick. But there have to be a confirmation candle before taking it, of which candle stick 2 confirmed it. To me, this is not a 50 50 chance because of this reasons.

    1. Eurusd is on the uptrend.

    2. This a continuation signal.

    3. The pin bar was confirmed by a relative pin bar, it has a long tail that signals bullish pressure.

    As you all can see, it took the price up to over 200 pips before pull back, therefore a 1:2 risk to reward ratio will be triggered for sure.

    Another example.

    GBPJPYDaily.png

    On the GBPJPY chart, I took the trade though.

    Candle 1 formed the pin bar which is strong also. Then candle stick 2 which has to be the confirmation candle formed a pin bar also. This is the kind of trade setup I wouldn't mind risking half of my account on. lol. because of the following reasons.

    1. The pair is strongly bullish on the weekly and monthly time frame.

    2. The pin bars are formed on a support area on the daily chart and the confirmation candle is also a pin bar and also small, therefore my stoploss will be 5 pips beneath the confirmation candle.

    You see, it too the price all the way up to 2000 pips. isn't that great? I am still learning though. lol.

    Okay let see a failed pin bar and why.

    EURUSDDaily2.png

    As you can see, candle stick1 formed a pin bar on the resistance level which is a good point and it is also a strong pin bar. But then candle 2 which has to be the confirmation candle formed with a lower wick, this will translate to me that bulls will not let the price go down, therefore he confirmation candle is not strong enough. So there are two points why I will no take this kind of setup.

    1. The confirmation candle is not strong enough. ( the wick).

    2. EURUSD is bullish.

    So, this is how I take pin bars, you can as well refer to your chart and see for your self and when they form, you can demo trade them. Note, I trade this way on the longer time frame alone, which is daily, weekly and monthly. If you should apply this on the lower time frame, then you will fail most of the time. The longer time frames are more accurate.

    Thanks.

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    Its an honour opening a fresh thread because of what I posted. Sir, the explanation you gave is very good, and you have gone further than mere trading of pin bar because you are carefully confirming the trades before you take it. This is a very wise way to trade, and it can not be a 50% chance as I said with normal pin bar trading. Also, you would have to use a good risk to reward ratio to finish the goal.

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    Quote Originally Posted by cozard007 View Post
    Its an honour opening a fresh thread because of what I posted. Sir, the explanation you gave is very good, and you have gone further than mere trading of pin bar because you are carefully confirming the trades before you take it. This is a very wise way to trade, and it can not be a 50% chance as I said with normal pin bar trading. Also, you would have to use a good risk to reward ratio to finish the goal.
    Sure, I am still learning, so some times, my risk to reward ratio is fixed at 1:3,but then some times it exceeds that depending on the situation of things.

    I will also open threads on how I take some strong positions and how I try to maximize my profits, though I am still learning. well, Candle stick pattern is a good way of trading mostly if we can be patient on the longer time frame.

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    Trading the pin bar could be well profitable in forex trading and it is one of the powerful candles that works the most in forex trading.

    But if you should go on looking for it on the lower time frame then you might not have good trading result, because many of them failed on the lower time frame.

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    I think that pin bar is one of the most likely to use patterns in the trading much charts . it eans to me that the market has failed to go on its direction and in a nee to reverse its direction . also the pin bar when comes at a very strong support or resistance level it is very sure to be used .

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    Pin bar trading is very good candlestick trading pattern.The traders make the pinbar trades following good market trend and make their trading result better.If there is pinbar trading with eurusd and gbpusd are best pairs if the traders want to trade.The traders understand about the pinbar and make their market planning with chart pattern which is suitable when pinbar can be traded.They make the good trades from it.

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    Quote Originally Posted by Quid View Post
    Pin bar trading is very good candlestick trading pattern.The traders make the pinbar trades following good market trend and make their trading result better.If there is pinbar trading with eurusd and gbpusd are best pairs if the traders want to trade.The traders understand about the pinbar and make their market planning with chart pattern which is suitable when pinbar can be traded.They make the good trades from it.
    Yeah it is a very good candles but experience will tell us one when we should take it or not. For me, I think before we should take any of them we need to have some skills and experience.

    There are so many of them on the chart that didn't work as planned therefore I am advising that before taking on those pinbars we should have practiced on demo for 6 months.

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    Quote Originally Posted by splash View Post
    Yeah it is a very good candles but experience will tell us one when we should take it or not. For me, I think before we should take any of them we need to have some skills and experience.

    There are so many of them on the chart that didn't work as planned therefore I am advising that before taking on those pinbars we should have practiced on demo for 6 months.
    You are very correct my friend, forex traders can not just start trading without knowing the full in-depth of what they are trading, this is why they should learn well and practice in order for experience to build up. Also, the suggested 6 months you sad is very perfect, and that 6 months is for the traders that has experience on other trading strategies in the market. If it is for newbies, it should be more than that.

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    Quote Originally Posted by cozard007 View Post
    You are very correct my friend, forex traders can not just start trading without knowing the full in-depth of what they are trading, this is why they should learn well and practice in order for experience to build up. Also, the suggested 6 months you sad is very perfect, and that 6 months is for the traders that has experience on other trading strategies in the market. If it is for newbies, it should be more than that.
    You know so many of us have different abilities to learn faster, some learns more faster, therefore I think in forex trading, we need to consider that as well, therefore six month is good.

    Also, it would be good when learning, just one strategy should be what should be focused on, You know it would be more better to learn one thing and perfect on it, that is why I have chose the candle stick pattern.

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    Quote Originally Posted by splash View Post
    You know so many of us have different abilities to learn faster, some learns more faster, therefore I think in forex trading, we need to consider that as well, therefore six month is good.

    Also, it would be good when learning, just one strategy should be what should be focused on, You know it would be more better to learn one thing and perfect on it, that is why I have chose the candle stick pattern.
    Sir, regarding your first point, nothing is fixed among forex traders, some might learn very fast, while some might learn and understand it very slow, so, this was the reason why I suggested both 6 months for old traders and more for new traders. Also, concerning the second statement, learning one strategy might not be enough at the initial stage, the trader needs to learn many strategy before he can choose the best from them.

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