Price Action Forex Strategy With Pin Bar And Trend Line

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

price-action-forex-strategy-with-pinbar

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.

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