Pinbar Price action trading strategy.

Price action trading strategy.

Wath is Pinbar 

 A pin bar is a type of price action pattern that occurs in the forex market. It is characterized by a long tail or "wick" on one end of the bar, and a small body on the other end. The long tail indicates that the price of the currency pair moved significantly in one direction, but then reversed and closed near its opening price. This can be a sign of indecision or a change in market sentiment. Pin bars can be used as a standalone trading signal, or as part of a more complex trading strategy.

Pinbar Trading strategy

Here is a basic pin bar trading strategy that you can use:

1. Look for a pin bar pattern to form on the chart. This can be on any time frame, but it is usually most effective on higher time frames like the daily or weekly chart.

2. Confirm the pattern by looking at the surrounding price action. The body of the pin bar should be small, and the tail should be long.

3. Look for a high-probability entry point. This is usually a few pips above or below the high or low of the pin bar, depending on the direction of the trade.

4. Place a stop loss order a few pips beyond the opposite end of the pin bar. For example, if you are buying, your stop loss should be a few pips below the low of the pin bar.

5. Take profit at a predetermined level, or use a trailing stop to capture profits as the market moves in your favor.

It is important to remember that no trading strategy is foolproof, and pin bar patterns do not always lead to successful trades. It is always a good idea to use risk management techniques like stop loss orders to protect against potential losses.