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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