1 hour pin bar strategy

The Complete Guide to Trading Pin Bars (updated April ) – Learn To Trade for Profit

 

1 hour pin bar strategy

The pin bar formation is a price action reversal pattern that shows that a certain level or price point in the market was rejected. Once familiarized with the pin bar formation, it is apparent from looking at any price chart just how profitable this pattern can be. Let's go over exactly what a pin bar formation is and how you can take advantage of the pin bar strategy in the context of varying. A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. The pin bar reversal as it is sometimes called, is defined by a long tail, the tail is also referred to as a "shadow" or "wick". The area between the open and close of the pin bar is called its "real body", and pin bars generally have small real bodies in. As seen below, back-to-back 1-hour chart pin bars formed at the time of the above daily signals, indicating further confluence and giving us further confirmation, it was safe to enter long. Also, entering on these 1-hour pin bars allowed a much tighter stop loss and thus better risk / reward profile as will be discussed in the next section.


The Pin Bar: One of the Most Powerful Price Patterns in Forex Trading


For the most part, the answer is yes, I do use intraday charts. However, you knew there was going to be a however, right? My favorite intraday chart time frames to trade… Typically, people who email me about the intraday time frames want to know if I ever trade solely off of these lower time frames. The answer is, 1 hour pin bar strategy, yes, I sometimes do trade the 1-hour or 4-hour charts on their own without taking into account the daily or weekly time frame.

In this way, the intraday charts work as an extra point of confluence to give weight to a trade and further confirm whether or not I want to enter it, 1 hour pin bar strategy. The other big advantage of the intraday charts is that they can allow me to fine-tune my entry to achieve better risk management.

More on these topics later. The most important thing to remember is that I never go lower than the 1-hour chart because from my experience, any time frame under the 1-hour is just noise. As you go lower in time frame, there are increasing amounts of meaningless price bars that you have to sift through and this makes the story of the market cloudier and cloudier, until you reach a 1-minute chart where you are basically just trying to make sense of gibberish.

I only look at the 1-hour and 4-hour charts when I am looking at intraday time frames. The anchor chart that I base most of my trading decisions on is always the daily chart time frame. For those who like to look at weekly charts, the concepts in this lesson could be applied there as well. You would essentially use the daily charts to confirm weekly signals and add confluence to them, as well as fine-tune your risk management.

It should be noted, I rarely trade off weekly charts alone, but for the die-hard weekly-chart traders, keep this in mind when reading the rest of this tutorial. Remember, it is NOT essential to trade the daily chart with confirmation from the intraday. Remember, this is NOT day trading! Remember, the initial trade trigger is still the higher time frame chart.

Luckily, there are a number of different ways you can get a good second chance trade entry on a signal you initially missed. One of those ways is by use of the 1-hour or 4-hour charts to look for a signal a few hours or even days later, to re-enter in the direction of the original daily chart signal that you missed. If you missed this one, you were definitely kicking yourself… However, for savvy price action traders, they know a second-chance entry will often present itself on the intraday charts not long after the daily signal fires off.

Notice, in the chart below, we see a fakey pin bar combo pattern formed shortly after the daily pin bar. Also, notice there was a larger 4-hour pin bar that formed the same day as the daily signal, adding more confluence to that daily signal. This is normal, and it happens often. Notice, in the chart below, we had a bullish tailed bar at support in an up-trending market.

But at the time that bar formed, you would probably be wondering if it was really worth taking or not, due to 1 hour pin bar strategy bearish close and the preceding swing lower. Intraday chart to the rescue. Notice the two convincing 4-hour pin bars that formed around the time of the above daily chart bullish tailed bar.

Sometimes, you will see a daily chart signal forms but does not have any real obvious confluence with a strong trend or key chart level, 1 hour pin bar strategy. In these cases, 1 hour pin bar strategy, you can rely on a clean intraday signal to be the confluence that 1 hour pin bar strategy need to either enter the trade or pass on it. It would have been very tough for most traders to buy right after such a strong sell-off.

There was a lot of bearish momentum and pressure overhead and this would have cast doubt on the daily chart pin bar signals seen below. The 1-hour chart would have helped us in this situation. As seen below, back-to-back 1-hour chart pin bars formed at the 1 hour pin bar strategy of the above daily signals, indicating further confluence and giving us further confirmation, it was safe to enter long, 1 hour pin bar strategy. This allows us to substantially improve our risk reward because the 1 hour pin bar strategy loss distance is reduced and the position size can be increased as a result, but the profit target remains the same, 1 hour pin bar strategy.

This is not going to be the case on every trade on intraday charts, sometimes the risk management ends up being very similar to what it would have been on the daily chart on its own. But there are many instances where it works out to where you can double or triple the potential reward on a trade by utilizing intraday signals. The 4-hour Dow Jones chart around this same time, fired off a 4-hour pin bar shortly after the daily pin above, providing us the potential to essential trade that pin bar instead, this reduces the stop loss by about half and allows us to double the position size, upping the reward to 6R max instead of 3R.

Maximizing winning trades is essentially how you build a small account into a big one and how you make big money in the markets. A similar situation in the example below. Your stop loss would have been over pips from pin high to low on this one, greatly limiting the potential Risk Reward: The 4-hour chart fired off a much smaller pin bar after the above daily pin. This allowed us to turn a 1R winner into a 5R or more potential. Price action trading does not simply consist of just looking for a few candle patterns on a chart and then placing a trade, not even close.

There is a lot more involved. There is a technical analysis side and a mental side to every trade, and both parts have to be learned and practiced over and over before you truly gain the ability to 1 hour pin bar strategy consistent money in the market.

This is wrong and will cause you to lose money. Instead, utilize the tips and tricks learned in this lesson and the others I teach in my trading courseto use the intraday charts to your advantage. Trading is about making the most out of a good signal, and this is what I use the intraday charts for, not to over-trade or meddle in my trades like most traders do. I hope you too can now use the intraday charts to your advantage by implementing the theory and concepts in this tutorial to ultimately improve the odds of any given trade working out in your favor and maximize its profit.

What did you think of this lesson? Checkout Nial's Professional Trading Course here.

 

1 Hour Pin Bar Strategy

 

1 hour pin bar strategy

 

Jan 18,  · Step 1: Find a Pin Bar On Your Chart *Note This is a stock price action strategy, and a forex price action strategy. I will use a currency pair as an example. Price action charts are with any market and timeframe. First, identify a pin bar that has formed. In the example, this is considered a bullish pin bar because of the long wick below the body/5(31). As seen below, back-to-back 1-hour chart pin bars formed at the time of the above daily signals, indicating further confluence and giving us further confirmation, it was safe to enter long. Also, entering on these 1-hour pin bars allowed a much tighter stop loss and thus better risk / reward profile as will be discussed in the next section. Sep 22,  · Forget what you’ve learned. The Pinbar trading strategy isn’t what you think. To tell you the truth: I once believed the Pinbar trading strategy was the “holy grail” of trading. All I needed to do was, spot this trading setup, enter the break of the Pinbar, set your stops, and make Author: Rayner.