The Trading System Pinbar | Trading System
The Trading System Pinbar- a popular strategy to enter and exit positions based on the particular pattern of candlestick and the consequent price action. The Pinbar pattern was first introduced by Martin Pring in his “Pring on price patterns.”
Characteristics of The Trading System Pinbar
- The conservative strategy offers opportunities for low risk and high yield.
- The range of non-loss is quite high if the equilibrium point is applied.
- unusual incidents.
- Timing is critical.
- The support / resistance is difficult to formalize.
Any currency pair and timeframe should work, but timing margins long term (eg, H4, D1, W1) should work better.
Commissioning of Pinbar:
The pattern consists of three bars: the left eye, nose and right eye. The left eye should be up to the bar Pinbar bearish pattern or bar down to the bullish pattern. The nose bar should open and close within the left eye, but its high (or low for bullish configuration) should protrude much more than high (or low) of the left eye. Both the opening and closing of the nose bar should be located in the lower ¼ (top for the bullish configuration) of the bar. The right eye is where trade occurs.
An additional condition for a good pattern configuration is strong support / resistance level formed either behind the eyes or near the tip of the nose. The stronger levels of support / resistance incorporate in this model, the more accurate. You can use our indicator for MetaTrader Detector Pinbar to simplify the process of pattern detection.
- The aggressive entry option will be to get a position in the right eye when the price retreats behind near the left eye level.
- The conservative point of entry is below (above to the bullish configuration) bar nose.
The conservative stop-loss can be set behind the level of support / resistance closest behind the eyes. A less conservative approach would be to set stop-loss point immediately behind the bar nose (in this case, your reward / risk ratio may suffer).
The conservative take-profit can be established immediately after the low level of the left eye (the high for the bullish configuration). The take-profit aggressive level can be placed farther – to the next level of strong support (resistance to bullish positions).
Examples of The Trading System Pinbar
Setting the trend towards low Pinbar:
This is an example of the aggressive start running. The entry point (blue line) is placed in the bottom of the left eye (the price retreated to that entry). The stop-loss (red line) is placed behind the point of the bar nose (in this situation, even the stop-loss conservative would not be affected, since the pull-back price for the right eye occurred before the entrance). The take-profit (green line) is set to the nearest support level and filled with ease.
Setting the upward trend in Pinbar:
This is an example of the configuration conservative. The entry point (blue line) is placed just behind the bar nose. The stop-loss (red line) is placed below the left eye. The take-profit (green line) is just above the left eye.