{"id":1378,"date":"2019-09-19T10:56:07","date_gmt":"2019-09-19T07:56:07","guid":{"rendered":"https:\/\/roboforex.com/blog\/?p=1378"},"modified":"2026-05-26T10:56:26","modified_gmt":"2026-05-26T07:56:26","slug":"pin-bar-forex-strategy-review","status":"publish","type":"post","link":"https:\/\/roboforex.com/blog\/blog\/2019\/09\/19\/pin-bar-forex-strategy-review\/","title":{"rendered":"How to Trade Pin Bars: Forex Strategy Review"},"content":{"rendered":"\n

Candlestick analysis<\/a> has been applied to financial markets since long ago. Some candlestick setups are used with indicators<\/a>; some are considered less trustworthy than the others. Today, we shall try to master a candlestick pattern called Pin Bar<\/strong>, which is a part of the trading strategy<\/a> Price Action<\/a>. With time, it has become an independent trading strategy, successfully applied not only on Forex<\/a> but also on the stock market. At the end of this article, we shall try to make some conclusions about the advantages and drawbacks of this strategy; meanwhile, we shall discuss what is the Pin Bar, the conditions of its forming and application options for trading and market analysis.<\/p>\n\n\n\n

<\/span>What is a Pin Bar pattern<\/span><\/h2>\n\n\n\n

Many people, looking at the Pin Bar pattern<\/a> will call it candlesticks from the classic analysis; it is true, to some extent, but there are certain peculiarities in the conditions of the Pin Bar formation, which make it different from classic candlesticks. The Pin Bar pattern may be called a Shooting Star<\/a> or a Hammer<\/a> depending on the place of forming; in their turn, the Shooting Star and Hammer candlesticks in some cases may not be a Pin Bar. Now to the peculiarities of the Pin Bar.<\/p>\n\n\n\n

Having spent a lot of time analyzing charts, I came to certain conclusions about the Pin Bar peculiarities. The first condition for their formation is a good support or resistance level, and the trader has certain freedom here. Provided the trader has enough knowledge and experience of technical analysis<\/a>, they can define the support and resistance<\/a> levels rather easily. However, if the experience in technical analysis is not enough, indicators of the levels may be used. For example, the trader may use the Moving Averages<\/a> with different settings; practice shows that the longer the period used, the stronger the level and the higher the possibility of the signal execution. Other indicators might be the Pivot Points<\/a>, Bollinger Bands<\/a>, Fibo <\/a>and others showing the support and resistance levels.<\/p>\n\n\n\n

<\/span>How to find a Pin Bar on the chart?<\/span><\/h2>\n\n\n\n

In the classical variant, it forms near the support or resistance levels the following way: a directed price movement (an impulse) emerges from 2 or more candlesticks, then a Pin Bar forms around the support or resistance level; it has a long shadow in the direction of the main price movement, a small body and an also small shadow in the opposite direction. The signal will be enforced by several additional factors of the Pin Bar formation:<\/p>\n\n\n\n