FAQ: Pin Bar Trade Breakdown (CHF/JPY 1H)

Question:

Thanks for all the advice in your previous emails it has really helped my trade management and i’m making money again! ๐Ÿ™‚

I’ve become unstuck at the start of the week trading CHFJPY (FYI – i’m now out of all my positions so you won’t be giving me financial advice etc etc).

The trade started off great and I was in profit with room to move prior to the Bank of Japan statement which hardly moved the market at all, I was hoping to scale in at some point using an inside bar or something.

Monday/Tuesday saw the pair pull back and I had moved my stop up after seeing the pin bar form on the 1hr + two highs close together but i’m not sure if I did the right thing?

The pattern was on the daily timeframe so in hindsight perhaps I should have managed it on the 4hr timeframe instead? (I also missed the 4hr pin bar as I was working unfortunately but would you use this to scale in?)

I have included a screenshot below;

Obvously i’m pretty gutted about this one, especially as it looks like I could have scaled into it. Still netted 5:1 but nowhere near what I should be I think.

Any advice on managing higher timeframe trades would as always be much appreciated.

Thanks

Response:

Alright, diving into your trade…

Nice job overall.

Just a few small tweaks could’ve made it even better.

Love that you entered on the daily engulf near the prior lows – smart move. Wish I’d caught this one, but I was knee-deep in the majors last week.

Moving your stop up post-first pullback?

Spot on!

But next time, consider getting in on the engulf. It was at a big round number and support level, plus there was nothing to lose; if the first trade tanked, this one would’ve had your back.

But hey, no biggie.

Now, let’s address the tiny misstep.

You pushed your stop up to the small demand zone after the next swing. On a daily trade? Not the ideal move. That swing nudged the price above the daily’s three highs, signaling the end of the consolidation.

Plus, the daily price had a good run, so a breather – a retracement or consolidation – was due.

Instead, keep your stop under the 3rd swing low, right where it says “Quite early after the” and wait for the price’s next move. You knew a retracement or consolidation was likely, so shoving your stop that far up might have invited a hit during the retracement/consolidation.

I get why you nudged it up to the zone.

Great for a 1-hour trade or a scale-in on a 1-hour signal, but not for a daily.

The price was more likely to rise due to the breakout of the consolidation.

Don’t sweat it, though.

No major mistakes, and you still pocketed a tidy profit. It’s all about understanding the probabilities in situations like these.

Hope this helps…

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