Results 1 to 3 of 3

Thread: How to take this Price Action Pin Bar(Part 1)

  1. #1
    Join Date
    Sep 2011
    Posts
    27
    Thanks
    0
    Thanked 3 Times in 2 Posts
    Forex Ability & Talent
    0

    How to take this Price Action Pin Bar(Part 1)

    Forex Trading Course – How to take this Price Action Pin Bar



    Forex trading pair: Gold (Xau usd)
    A forex price action pin bar formed as showed in the blue highlighted box.
    Lets Analyze this price action pin bar:
    1) Pin bar formed off the 25 moving average (yellow line)
    2) Pin bar protrudes out from surrounding prices. But the nose could be longer.
    3) The past few bars before the pin were all bearish bars. Which would make me doubt on whether the small pin has the strength to take on the previous bearish bars
    4) The over trend is in an uptrend
    Forex Trading Course – How to take this Price Action Pin Bar

    So this is a retracement pin bar. To play this pair, i would have placed a pending buy order on the break of the pin. (marked by the dotted orange line)
    Stoploss would be below the pin (marked by the dotted red line)
    As we can see the next bar would have triggered our stoploss had we entered the trade right at the close of the pin.
    This is the power of pending orders.
    So by placing pending orders in such a scenario. We would not miss out on trades that go our way, and we will miss taking trades that didn’t go our way.
    As always – Trade with a plan and if there isn’t a plan. Skip the trade.
    Ezekiel Chew
    Asia #1 Forex Mentor


  2. #2
    Join Date
    Apr 2012
    Posts
    463
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Forex Ability & Talent
    0
    Using the Price Action theory we can use the Pin Bar to get a trade setup but we have to be careful at the time of the news release as this may not give correct trading signals.

    Most of the Indicators fail to give correct signals at the time of the major news release.


  3. #3
    Join Date
    Jan 2011
    Posts
    165
    Thanks
    12
    Thanked 10 Times in 6 Posts
    Forex Ability & Talent
    1
    Quote Originally Posted by UWCNeeraj View Post
    Using the Price Action theory we can use the Pin Bar to get a trade setup but we have to be careful at the time of the news release as this may not give correct trading signals.

    Most of the Indicators fail to give correct signals at the time of the major news release.
    News can easily whipsaw you out of a position.

    Best advice is to wait till the dust settles on a news release and then trade according to the finalized direction.

    p.s. I love pinbars. They're a great way to trade price action.

    I am The Money

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •