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In recent years Price Action has rapidly gained popularity among traders for its simplicity and reliability.
It really is so good that many traders have started to use the elements in their trade. The most popular and recognizable element was a pin-bar. Its name he received from the hero of the old tale about a wooden boy, Pinocchio, as a prototype, a pin bar poking his long nose outwards and tells you the truth that the price goes down.
A diagram of the pattern you can see above, the idea is that the nose is a candle whose body is in the lower third, close to the minimum price, or Vice versa, in the upper third, close to the maximum price of the candle. Thus the body itself must be within the left eye. This is a classic case of the pin bar, and these are worth to sell.
Thus a good pin bar has:
1. Open/close within the left eye.
2. Long nose, protruding far out from surrounding prices.
3. Open/close both near one end of the bar.
But one pin-bar will not give you good results in trading. Besides the candles should pay attention to the presence of pin-bar.
Best score pin bar will show, if will start from:
1. Levels of support and resistance.
3. Important reversal levels.
4. Fibonacci…
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hrustiashka avatar

Nice job!

klintons avatar
klintons 26 May

Very professionell

Wovch avatar
Wovch 26 May

good article!

sonjatrader avatar

Thank you

al_dcdemo avatar

Interesting and useful material, nice illustrations and very well written! A great article!

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Most of the traders have traded Pin bars at some point, or at least learned about them in past, but it is still grey area for many traders. Well It shouldn't be. Pin bars should be included in any traders system or at least some part of it as they are great trading tool. I love trading Pin bars - they are easy to spot and most importantly very profitable.
I assume that the reader has some basic understanding of Japanese candlesticks as I will not re-visit the basic definition of candlesticks. I will just show how I trade Pin bars what process I use to identify them easily. For the purpose of clarity this is the definitions I use:
  • Most important of all - don't look for pin bars - pin bars are easy to spot - the will jump out of the chart like a sore thumb. If you have to think about it - “Is it a pin bar or not?” - most likely its not a pin bar.
  • Pin bars are Reversal patterns - that means there must be a trend before them - even if it is for short period of time
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Hello everyone. In this article I will explain to you one of my live trade with pair EUR/AUD and I will explain to you my trading system in the range. “Trend is your friend” is ok for me. I would like to open my trades only in the direction of the trend. But what in case if there is no trend? Can I find any trade opportunity in this case? In the range price is in sideway moves. Price establish support and resistance and moves between them. See the following examples with forex currency pairs, all are daily time frame: NZD/USD, EUR/USD and EUR/AUD. All have perfect range for me:
Range is not always bad because for me can sometimes mean a good opportunity for trade. I have a rule: I do not trade breakout of the range because the price may still return. The rules of good range for me are: strong level of support and strong level of resistance and price have to bounce up from support and price have to bounce down from resistance. Not all ranges are ok for me. The best range not have zigzag moves between of support level and resistance level. If price create valid price pattern, than I can trade it. Best pattern for me is pin bar. What is pin bar? Please look next picture with explanati…
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Ange_Farouche avatar

thank u for sharing ur experience!

geula4x avatar
geula4x 30 Dec.

+1 Liked: Nice article + clear examples! :-)

dntrader avatar
dntrader 30 Dec.

Thank you to all :)

alifari avatar
alifari 30 Dec.

good one

agddivisas avatar
agddivisas 30 Dec.

"I do not like indicators. I found that I do not need them. The best indicator for me is price. I use for analysis only support line and resistance line and trend line. Classical elements of price action."
I agree with this.

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Hi all traders. This is my first analytical overview in this community. I hope, it will be interesting reading for you. I would like to showyou my analytic overview of London open - 19. of september 2013 on
short time frame 15 minutes with currency pair GBP/JPY. I will use
only support and resistance levels with combination of price action
in overview. It is very simple for understand.
Price created newlevel of resistance at night. This level of resistance is very
important for my analytic overview. The first test of level of resistance was unsuccessful but London open can change it very fast. We can see all situation on next
London open created very solid massive breakout from thisresistance level. Breakout is with four green bars. This breakout is
valid and price created new clear level of resistance. We have two levels of resistance now:
After that price move down withfive red bars and last bar is typical pin bar. Pin bar is bar with
one long wick and one small wick and with small body. Price tested
resistance and created support from this level, because price did not
close below of this level. This new level of support was very
important for this setup. We need to know…
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dntrader avatar
dntrader 24 Oct.

Thank you. You need to know direction of trend from higher time frame to open any position.

David_ avatar
David_ 28 Oct.

Do you see new setup?

northernwave avatar

good idea. thanks for sharing your knowledge.

dntrader avatar
dntrader 28 Oct.

I do not see new setup now. Never mind, it is only one setup of more :)

dntrader avatar
dntrader 28 Oct.

Thank you

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Overview This article will discuss the ways in which emotions influence our trading decisions. We will also consider the mass psychology of FX market participants with a view to utilising their behaviour to improve our trading edge. Man or Machine?Do you want to replace your emotional, impressionable self with an all-encompassing black box to execute your FX trading plan?The vast majority of the most successful traders in the world possess, or have learned to develop, a state of emotional disconnectedness from their trading. The ability to doggedly stick to a plan, even through periods of drawdown, is a testament to their remarkably robotic decision making ability. In a bid to artificially recreate this trait in your trading you may have considered programming, or buying, your own automated algorithm. However, if like me, you find it difficult to calculate support/resistance levels, program recognisable chart patterns, and quantify many other seemingly arbitrary elements with any useful accuracy, you will also begin to realise the sheer number of interlinked factors that must be considered. Discretion, born out of intuition, is often something we exhibit without realising, but it …
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hedonist avatar
hedonist 12 Oct.

@OneGoodTrade: Thank you for your kind comments. In my opinion, psychology should have as equal consideration as technical and fundamental analysis. I don't think any trader can be successful if they have no regard for their emotions.

hedonist avatar
hedonist 12 Oct.

@doctortyby: I have been trying to reply to your comment since Monday, but there has been a glitch on this website. Anyway, thank you for your comment and I'm glad you liked the "psychology behind the candlesticks". With respect to "profitability ratio", it's a bit beyond the scope of this article, so maybe that's something I can address next time. Thanks buddy.

SpecialFX avatar
SpecialFX 13 Oct.

Good article, anyone who mentions Jesse Livermore and Richard Dennis (not Ron Dennis! lol) gets my vote :) I have the books you mention as well. @OneGoodTrade Unfortunately, any articles that have a lot of text to read, or are based on fundamental analysis, or psychology, or have a long term view of the market, or are too techie, get little attention. A few charts with tons of indicators, a few sentences, short time frame, that is what gets views, even if the strategy/prediction is completely flawed. There is little correlation between the quality of the articles and how popular they get :)

hedonist avatar
hedonist 13 Oct.

@SpecialFX: Ron Dennis? The old McLaren team principal, haha! I actually read your article from last month about shorting the YEN. That was really well put together and a good read. Obviously it was good, because it won, lol! I do agree with you about lengthy articles with limited pictures etc receiving low populartity ratings. I should have considered people for whom English isn't their mother tongue. Perhaps I'll make the next one slightly more readable. Oh and Jesse Livermore - Absolute legend. A shame he committed suicide. Maybe there's a lesson to be learnt there somewhere...

bmg avatar
bmg 30 Oct.


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