Great Forex Pin Bar Strategy

Great Forex Pin Bar Strategy This is my Forex Pin Bar Strategy. To begin with you must be able to identify a pin bar to use this strategy. A pin closes near its open and has a long tail pointing either up or down. Usually a pin bar will happen near the top or bottom of a trend. If you see one of these bars penetrating through a support or resistance line you have a possible entry. Obviously price can not hold at this new level so it might turn around.

There is two different ways to enter a pin bar trade. My favorite is to set a limit order at the support or resistance that price touched. Price will usually return to this level to test it a second time, this is perfect for your limit order. Price will come up touch the support or resistance, trigger your order, then head back into profit. The second way is to just enter when a bar closes. The problem with this method is that price often retraces before heading in the intended direction, on the other hand sometimes it doesn't retrace at all and usually those are some of the best moves.

Your Stop Loss should be at the top or bottom of your pin. Sometimes price breaks above this region, that is why I really like entering trades only around support and resistance. These extra things add up to make the trade more probable than a lonely pin in the middle of nowhere.

The tricky part of my strategy is where to exit. You can exit at the amount your risking, you can exit at twice of what your risking, you could use a two bar trailing stop, or maybe at a support or resistance line. Every trade is going to have different possibilities for exits.

There is a lot of variables in the forex market so arm yourself with a good strategy. If your looking for a profitable technique check out my blog.

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