The pin bar candlestick pattern in my opinion is the single most powerful candlestick reversal pattern you can ever think of. When you identify the pin bars correctly and you trade them the right ways, it will produce consistent profits time and time again. I have a colleague who trade mainly this kind of bars. My friend’s profit to loss ratio is an average of 8:1 every single month. He trades mainly on daily chat.
This individual single bar reversal pattern is enough to make a living easily. I have tried it before and I don’t hesitate to trade whenever I spot a good pin bar as it meets my trading conditions.
What is a pin bar candle sticks pattern? A pin bar is a candlestick pattern where the body of the candlestick is very small and has a very long wick. The following are reasons 3 powerful ways to use pin bars to double your account in just less than 8 weeks.
Firstly, if the pin bar has a wick that is three or more times the length of the body, the greater the chances that the trend is reversing temporarily or permanently. This bar with a wick that is up to eight times the length of the body has a much higher probability than one with much less. As the wick stick out from the surrounding price action, a lot of traders swing in to action to execute a trade. If you can spot such a pin bar at the close of each daily candle, you will sing together with the professionals in less than 24 hours. I can assure you.
Secondly, the pin bars that are formed around previous major swing highs or swing lows, major levels of support and resistance, major pivot points, major Fibonacci levels or where there is strong confluence or a combination of many of the above points will be very difficult to reverse. That is why majority of the successful traders trade with their eyes all the time and reduce the use of lagging indicators.
Thirdly, to double your account in less than 8 weeks can be obtained if you filter the pins. This is what my friend always does. This is what I do too. I can double my account easily because I know what it takes to filter my trading strategies. Not all pin bars are trade able. You must be very discipline to know when to trade and when to keep away. Take for example, a day that has a lot of major news activities is not a good day to trade forex because of instability in the price. If you can spot up to 10 correct set ups monthly, it can make you millionaire faster than you expected.
If you trade with very simple price action software as I do, you will easily make money over and over again. You will even double your account easily as I always do by just spending 10 minutes daily.