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Very important to note :The basis of my strategy are supply and demand areas. Without any specific supply or demand area we dont need to check for further indicators.If we have a supply or demand area we try to find some of the indicators mentioned in this article to increase our odds of a successful trade.The more indicators provide our trading idea, the more likely our target will be hit..... logic ? Isn‘t it ? Bearish engulfing outside bar PinbarsIn my opinion the pinbar reversal pattern is one of the most powerful candlestick reversal patterns out there.If you identify correctly and take the major ones they can produce consistently profits.This single bar reversal pattern is able to earn a lot of cash for you.And that‘s why most traders love it, because it is a single bar pattern, easy to spot, easy to trade.Often pinbars develop at swing highs and lows, this is interesting if we combine it with demand and supply areas to catch the reversal points.Again we can combine it with divergence of course to squeeze all odds out of can find my divergence course here in past articles called ( the power of divergence) What is a pinbar at all ?A pinbar is a candlestick pattern whe…
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doctortyby avatar

I like the fact that you have explained the patterns and you have given clear examples with chart images.

doctortyby avatar

You can use the Order Flow Book (right now we have SWFX sentiment index, COT charts and Market Depth availeble at Dukascopy Bank) to see if the supply and demand areas in your chart are confirmed by the open orders.

litsat avatar
litsat 9 Oct.

very good. Everything I use in real trading :) wish you the first place

Mado avatar
Mado 10 Oct.

thanks guys
@doctortyby yeah thanks your article is so good with my strategy

hedonist avatar
hedonist 11 Oct.

Interesting article Mado. In my experience, people trading the lareger timeframes your talking about are more often trend followers. Do you think its harder to make money being a contrarian on the monthly timeframes?

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divergencehow can we increase our success rate ? What do i use to filter out losing trades ?Well there are two more basic concepts I usually include into my trading.First, i use divergence to combine it with my supply and demand areas and second, i use price patterns as an additional confirmation of reversals.In this chapter we will talk about divergence.How does it work ?Whats the idea behind it ?To identify divergence, we need to compare the price structure with an indicator. I always use the MACD oscillator.You can also use stochastic,CCI, et cetera.If price makes higher highs, the oscillator should also make higher highs. If price makes lower lows, the oscillator should also make lower lows.If this isn‘t the case, price and the indicator are diverging from each other. And that's why it's called "divergence."We can use divergence to spot a possible reversal, a weakening trend or even a continuing trend.We do have two different kinds of divergences :1. regular one2. hidden one1.Regular divergenceIf we spot a regular divergence, price is likely to reverse.Combine it with our demand/supply zones and we can increase our successrate by fishing out losing trades.Some visual stuff for…
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scramble avatar
scramble 26 Sep.

just a question about charts: i find them very nice, did you take the screen directly from the platform or did you elaborate the pictures later? i'm reffering to those shadows in trendlines and also in the gray background. btw, fx5 div v1.1 still the best!

Mado avatar
Mado 27 Sep.

i use snagit

scramble avatar
scramble 27 Sep.

:) thanks!

captain avatar
captain 27 Sep.

Divergencies do indeed help in spotting trading opportunities

eagl avatar
eagl 27 Sep.

Learnt something new today about divergences: hidden divergences. Thanks for showing it so clearly.

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                     A beginner trader in forex would be best advised to learn a
simple mechanical system and stick with it until he masters it. One of the best
mechanical systems would be to learn price patterns in charts. This is purely a
price action method so the reliability is much higher compared with an
indicator laden system. This is not to shoot down indicators that has a place
in the trader's arsenal but that stage comes after the trader has somewhat mastered
the art of trading and uses the indicator as a confirmation for his entry /
exit. A newbie would be prone to using the indicators as an entry signal
instead of as a secondary confirmation tool. The result will be a blown account
and shattered confidence because we all know indicators are lagging behind
price for the most part. So which mechanical system is more suitable for the
newbie trader? There is one called the Pin Bar, short for "Pinocchio
Bar" which was first coined by Martin J. Pring who is a leader in the
global investment community and also an author of many books on Technical
Analysis. This is in my opinion, one of the
most powerful price patterns in trading. When this Pin Bar is played
according to its pr…
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fzavier avatar
fzavier 13 Feb.

The information which I have so freely shared here, equals to money in the bank for you. If you are serious to trade this strategy.

fzavier avatar
fzavier 14 Feb.

I am planning to share an advanced method of trading Pinbars in future but I want to see how many are interested. Please let me know by your comments here, so that I will be encouraged to share my knowledge with you. I dont want this going into the waste-bin. These are powerful information which I am sharing freely, for your benefit.

fzavier avatar
fzavier 20 Feb.

Anyone wants to discuss this method? Welcome to share your views.

fzavier avatar
fzavier 22 Feb.

This one method alone is capable of making your rich, if you traded with some common sense.

riley avatar
riley 21 Oct.

Excellent explanation of the pinbar. I've been looking for an explanation like this in regards to what actually qualifies one to be a pinbar. I am extremely interested in learning more about the advanced method.

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