There are a lot of technical analysis figures, there are a lot of different patterns, but as you know, they don’t work 100% of the time.
No matter what you trade, you should always pay attention to the market context and the pin bar is no exception.
The pin bar is a very profitable pattern, as long as you trade it correctly.
Beginners often make mistakes trying to trade every pin bar the market forms.
Today we will try to analyze the most common mistakes made by beginners when trading with a pin bar.
1. Pin Bar Trading in Trending Markets
To begin with, every beginner should learn to trade a pin bar in trending markets, because any pattern will work on its own if it is traded in the direction of the trend.
The trend is still our friend and we must use its strength to open positions.
Look for an entry point on the pin bar in the direction of the trend and avoid losses.
2. Pin bar on daily charts
A trader should be able to trade a pin bar on daily charts, because a daily chart is the best chart to trade. This is a fact.
If you don’t know how to trade a pattern on a daily chart, then you won’t be able to trade it on smaller time frames.
As you know, the market is full of trading noise on low timeframes. That’s why patterns are more difficult to work with.
In such noise, false signals appear that confuse beginners, but an experienced trader will be able to determine a really profitable entry point.
3. Market conditions
It is very important to understand where to wait for the right pin bar, which will bring profit.
Pin bars can be found anywhere in the market, but this does not mean that each of them will bring you profit. Nope.
The strongest signals occur near strong levels, it is at such points that it is worth looking for an entry.
Very often, traders trade a reversal pin bar, hoping to spot a trend reversal.
If you catch such a move, you can win a lot, but it is difficult to do it.
The price rarely reverses immediately after the pin bar, the market will fluctuate and if you place a stop loss too close to the opening point of the position, it can be removed.
The most correct thing is to place a stop loss where the closing of the position will be correct, perhaps a little beyond the opening point.
No one wants to get out of position early and see the price go where we wanted it to be, but without us.
The strongest signals simply cannot appear everywhere on the chart.
You must be able to filter the signals correctly and use the most profitable ones.
To do this, first study the theory, gain experience on older timeframes, and only then practice further.
Take your time.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I’ll be happy