pinbar part 3

Now this is a great strategy to use in a trending market, you just need to draw your support or resistance level and when price retrace to those levels wait for a pin-bar formation and take your position in the direction of trend. Very easy indeed and the simpler it is the more profitable it will be.




I bet you can’t wait to pick those bar formation. To help you even more here is a good way of entering the market with minimum drawback. Once the pin bar is formed, draw the fib line connecting the high to the low of the bar.
Now wait for the price to retrace to the 50-fib level then place your trade with your stop loss to the nearest peak as seen below:



60% of the time price does retrace to the 50-fib level before going up or down after a valid pin bar is formed. This is a great entry point as it will greatly reduce your stop loss thus minimizing your exposure in case trade goes against you (remember no system is 100% profitable).This system is very profitable and the beauty of it is that you won’t need to be glued to your computer screen the whole day. Just a couple of minutes a day, that’s all it takes.
Happy Trading,