The pinbar forex strategy allows you to trade forex without lagging indicators, just pure price action.
The strategy consists of the famous pinbar candlestick and a simple trend line.
Instead of identifying pin bars yourself, use the pin bar indicator which you download below.
It will save you time.
Chart Setup
Indicators: PinBar
Preferred time frame(s): 15 minutes and above
Trading sessions: any
Preferred Currency pairs: any
Download
Download the PinBar Metatrader 4 Indicator.
Example: AUD/USD Daily Chart
As shown in the chart above (click to enlarge the chart), the AUD/USD trend is clearly up.
Draw the upward trend line by connection the higher lows in the up trend.
Now wait for the AUD/USD to retrace towards the rising trend line and finally wait for the green pin bar to appear on the chart.
We enter a long trade at 0.9249.
Place a protective stop below the most recent support at 0.9195 or below the trend line.
Trading Rules
Buy Scenario:
- Overall trend must be up
- Draw the upward trend line
- Price retraces back towards the rising trend line (low risk entry)
- Wait for a green pin bar.
==> Open long trade at the open of the next candlestick.
Stop-Loss: Place a stop-loss below the most recent support level or 1 pip below the rising trend line.
Buy exit strategy 1: Close the trade at risk-to-reward 1:2 or better.
Buy exit strategy 2: Exit trade at previous resistance level.
Sell Scenario:
- Overall trend must be down
- Draw the downward trend line
- Price retraces back towards the falling trend line (low risk entry)
- Wait for a green red bar.
==> Open short trade at the open of the next candlestick.
Stop-Loss: Place a stop-loss above the most recent resistance level or 1 pip above the declining trend line.
Buy exit strategy 1: Close the trade at risk-to-reward 1:2 or better.
Buy exit strategy 2: Exit trade at previous support level.