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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