I was so eager to start today… I sat down at the computer, setting up my alerts so I only watch the last 5 mins of the hour and the first 5 mins…Tried to find pinbars… Saw some, not much, but got mixed up in thinking how to use it in combination of trading towards the recent new HH/LL…
I’m so sorry, but I messed it up in my head…
Read the pinbar articles of yours I’ve printed but it still doesn’t make sense how to practically trade a pinbar towards the last high/low… It all seems that, once the new High/Low is set, after a new pinbar the trend has changed?
Could you please do me a favor by marking a H1 chart and trading the pinbar towards the new high/low how you suggested in your email?
I hope I can be more ready tomorrow… Hope I didn’t let you down by writing this…
Hey Phil, don’t sweat it! You’re just getting your feet wet with a new trading method; no one expects you to be an ace right off the bat.
Here, let me break it down for you.
I’ve attached an image of today’s USD/JPY action.
At the top, you see last week’s low. As the market opened today, price dipped and a new low formed. That’s your cue to hunt for a bearish pin bar, as the lower low hints at more downside.
A small rebound happened, ending with a less-than-obvious bearish pin bar.
What you gotta do is hunt for these elusive bullish and bearish pins amidst the retracement chaos. It’s tricky with some currencies where retracements look more like consolidations, offering more false signals.
Look at the current EUR/USD down-move for an example.
Post bearish pin, price took a nosedive, made a new lower low, and paused. Four candles into the pause, another bearish pin popped up, and the price dropped again three candles later.
Both bearish pins emerged after the market hinted at wanting to move lower (think new low).
And hey, they both paid off!
When you’re scouting for pins, keep your eyes peeled for a recent high or low break. Old lows and highs? Irrelevant. What matters is the most recent low/high. Spot a new one? Wait for a retracement and watch for a pin bar to form.
Once it pops up, place your trade long or short.
You’re facing minor hurdles that’ll fade away as you gain more experience with pin trading. Hang in there!