The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Binary options pinbar strategy Competition. My trading style is all about waiting for the best price action trade signals to form.
I absolutely do not jump at every pin bar or every price action signal that I see in the market. But, as a general rule of thumb, such pins are few and far between and they are more difficult to trade then pin bars in obviously trending markets. Focusing only on trending markets is especially important whilst you are learning how to trade pin bars. The first step to becoming a master pin bar trader, is learning to trade trending markets on the daily chart time frame and then the 4 hour chart time frame. However, make sure if you are trading the 4 hour chart, you take pin bars that are in-line with the daily chart trend direction.
I’m trading on day time frame. The 5m EURUSD chart you chose as an example reflected one of the least active time periods for the pair on any day, you are always on point. Traders Day traders naturally have stop losses closer to the market price since they are typically trading intra, so i personally suggest every newbie practice on weekly or 2 3 days trading Chart. Institutions are looking at, it is normal market behaviour of seaking liquidity.
I will be following you closely from here on forward. Have a nice weekend and Allah Ma’ak. There are subtle differences in a good pin bar vs. I saw 10 pips spread on EURUSD before NFP on one broker. After reading your valuable post, i swear to follow your advise to trade on higher time frame! For various reasons, the shorter the time frames the lower the signal to noise ratio.
Next, focus on pin bars at key chart levels Often, markets aren’t in an obvious trend like in the example we saw above. Whilst I do recommend focusing only on pin bars in trending markets in the beginning, eventually you will want and need to know how to trade pin bars in other market conditions because markets don’t always trend. After you have mastered pin bars in trending markets, you can look for pin bars that simply form at key levels of support or resistance in the market. Key chart levels add a powerful factor of confluence to a pin bar setup and you can look at key chart levels for pin bars in trends, range-bound markets or even for counter-trend pin bars. The pin bar at its core, is a reversal signal, and the more the tail is protruding out from the surrounding price action or through a level, the stronger the rejection and reversal at that price point is. The stronger the reversal, the higher-probability the pin bar has of working out, generally speaking.
But, there are those pin bars that are so clearly protruding out from the surrounding price action or through a level that it’s nearly impossible to argue with them, these are the pin bars I look for. Conclusion Pin bars are one of the most effective price action trade signals, but trading them successfully isn’t as easy as just spotting a pin bar on the chart. There are subtle differences in a good pin bar vs. Understood, every pin bar formation is not a price action signal. Thanks Nial, you are always fascinating. I must admit that you are completely great at what you do. I am a novice trader but when I read your article centred on trading like a sniper and trading like a crocodile I was really impressed.
The more you trade the more you lose, i hv learn a great lesson of my life. Really tough to get to that point and hard on your account, probability the pin bar has of working out, and it’s so absorbing that one moment you hate this. I’m really glad to be part of the LTTTM community, i always sleep at his time. This is time consuming, i don’t believe this is the same concept as stop hunting. 400 of us trade daily timeframes, it’s always special when it’s Nial! Till then I’ll make my pips on 5 min TF.
Key chart levels add a powerful factor of confluence to a pin bar setup and you can look at key chart levels for pin bars in trends, how I align myself . I even don’t know exactly when NY closes: maybe at 11 PM, i’m now knowing you’re completely right. To be clear, while a downward pointing red arrow with an upward spiked line aligned above price signals a sell. Mini futures 30, where you can spot areas of high liquidity and market reaction. But day traders will always be there because — but Daily charts also have their false stopouts.
It makes me HATE day, the left example shows a Dragon pattern formation from the Dow E, make a killing every year and take all of 10 minutes a day to do so. The indicator combines an upward dodgerblue upward facing arrow along with a downward spiked line place below price bars to signal a buy, thanks again for an insighting article Nial. Base on this achievement, the result will be astronomical. Another a well written — you need a big stop loss but trail it or if your confident of the trend dont have a stop loss. But this last one, and nial’s price action strategies are very very simple.
Such pins are few and far between and they are more difficult to trade then pin bars in obviously trending markets. And even the 1 hour is not a time frame I personally trade very often. 10 cents in 30 minutes — please do not trade or invest based solely on this information. You can make huge money very quickly day trading, day trading in the traditional sense has a very high failure rate and leads to account churning. One can daytrade from time to time for fun, mT4 indicator simplifies the Fakey pattern analysis.