Forexdemo

What is a pin bar

The

pin bar is a price action pattern that is considered to indicate that there may be a reversal in the market. However, not all pin bars provide a clear signal that the market will improve the trend. A huge number of such candles are created due to the making of profits by bank traders.

Pattern is a battle between buyers and sellers in which one of them eventually wins a position. The

Pin Bar is easy to detect in the chart. Therefore, confusion in whether the candle is a pin bar or any other kind of candlestick should not arise.

Each of the straps of the bear pin will be created on this principle: the body of the candle is in the lower candlestick, and its wick – on top. It is believed that the body of the candle is not located directly from the bottom, but will still be in the lower half of the candle.

Bull pin bar is very similar to a bear, the only difference between them is that the body of the pen can be seen on top of the candle, and the wick – from below.

Formation pattern

As mentioned, the bar pin is considered the result of market sentiment between buyers and sellers that lead to the creation of this unique candle pattern.

Bull pin bar created due to price deviation from highs. Bear pin bar is formed due to the deviation of price from lows.

You often see the formation of pin bars because there is a tendency among market participants to capture weak positions near ups and downs. Some traders call it stop-hunting.

Pin bars are formed at the end of the rally or at the end of the correction. So you can often see that price makes the last push before closing using the model pin bar candlestick.

Trading Characteristics

One of the advantages of trading with a pin bar is that it can happen in any time frame. This way traders can find opportunities to trade using the bar pin at any time frame.

Of course, creating a bar pin on an older time framework is more authentic than those that arise at a lower time period. Risk and reward settings also vary, as investors should keep in mind.

Insulated pin bar trading is not the best option. Like everything else financial markets, account should be taken of the emergence of this candlestick model in the context of the market.

Many traders believe that trading only by this formula is more than sufficient. That is not true. You need to identify it along with your trading strategy and also seek confirmation in other aspects of the trading system.

Post What is the pin bar appeared for the first time on G-Forex.net.

Exit mobile version