Pin Bar Trading Strategy | PriceAction.

com 21/1/19, 10;20 PM

Pin Bar Trading Strategy

(http://priceaction.com/price-action-
university/strategies/pin-bar/)
Posted by Nial Fuller (http://priceaction.com/contributors/nial-fuller/) ! Leave a
comment (http://priceaction.com/price-action-university/strategies/pin-
bar/#respond) (http://www.learntotradethemarke
t.com/forex-trading-course)

The Pin Bar Pattern (Reversal or Continuation)

A pin bar pattern consists of one price bar, typically a candlestick price bar,
which represents a sharp reversal and rejection of price. The pin bar reversal
as it is sometimes called, is defined by a long tail, the tail is also referred to as a
“shadow” or “wick”. The area between the open and close of the pin bar is Get My Weekly
called its “real body”, and pin bars generally have small real bodies in Trade Setups
comparison to their long tails. Newsletter &
The tail of the pin bar shows the area of price that was rejected, and the Education
implication is that price will continue to move opposite to the direction the tail Lessons
points. Thus, a bearish pin bar signal is one that has a long upper tail, showing Delivered To
rejection of higher prices with the implication that price will fall in the near- Your Inbox -
term. A bullish pin bar signal has a long lower tail, showing rejection of lower 100% Free
prices with the implication that price will rise in the near-term.

Subscribe to the most

popular forex trading blog
online,
with over 250,000
readers.

http://priceaction.com/price-action-university/strategies/pin-bar/ 1
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

Enter your name here...

Enter your email address here...

I AGREE TO PRIVACY POLICY

(http://www.learntotradethemark
et.com/privacy) (CHECK BOX)

Sign Up

(http://priceaction.com/wp-content/uploads/2015/08/pinbar1.png)

How to Trade with Pin Bars

When trading pin bars, there are a few different entry options for traders. The
first, and perhaps most popular, is entering the pin bar trade “at market”. That
simply means you enter the trade at the current market price.

Note: the pin bar pattern must be closed out before entering the market based
on it. Until the bar is closed as a pin bar pattern, it’s not really a pin bar yet.

Another entry option for a pin bar trading signal (http://priceaction.com/price-

action-university/strategies/pin-bar/), is entering on a 50% retrace of the pin
bar. In other words, you would wait for price to retrace to about the halfway
point of the entire pin bar’s range from high to low, or its “50% level”, where
you would have already placed a limit entry order.

A trader can also enter a pin bar signal by using an “on-stop” entry, placed just
below the low or above the high of the pin bar.

Here’s an example of what the various pin bar entry options might look like:

http://priceaction.com/price-action-university/strategies/pin-bar/ 2
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar2.png)

Trading Pin Bar Signals in a Trending Market

Trading with the trend is arguably the best way to trade any market. A pin
bar entry signal, in a trending market, can offer a very high-probability entry
and a good risk to reward scenario.

In the example below, we can see a bullish pin bar signal that formed in the
context of an up-trending market. This type of pin bar shows rejection of lower
prices (note the long lower tail), so it’s called a “bullish pin bar” since the
implication of the rejection reflected in the pin bar is that the bulls will resume
pushing price higher…

http://priceaction.com/price-action-university/strategies/pin-bar/ 3
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar3.png)

Trading Pin Bars against the Trend, From Key Chart Levels

When trading a pin bar counter to, or against a dominant trend, it’s widely
accepted that a trader should do so from a key chart level of support or
resistance. The key level adds extra ‘weight’ to the pin bar pattern, just as it
does with counter-trend inside bar patterns (http://priceaction.com/price-
action-university/strategies/inside-bar/). Any time you see a point in the
market where price initiated a significant move either up or down, that is a key
level to watch for pin bar reversals.

http://priceaction.com/price-action-university/strategies/pin-bar/ 4
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar4.png)

Pin bar Combo Patterns

Pin bars can also be traded in combination with other price action patterns
(http://priceaction.com/price-action-university/strategies/). In the chart below,
we can see an inside pin bar combo pattern. This is a pattern in which the
inside bar is also a pin bar pattern. These inside pin bar signals
(http://priceaction.com/price-action-university/strategies/pin-bar-inside-bar-
combo/) work best in trending markets like we see below…

http://priceaction.com/price-action-university/strategies/pin-bar/ 5
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar5.png)

The pattern in the chart below could be considered the ‘opposite’ of the inside-
pin bar, it’s an inside bar inside a pin bar signal. It’s relatively common to see
an inside bar form within the range of a pin bar pattern. Often, a large
breakout move will follow an inside bar formed within a pin bar’s range, for
this reason, the pin bar + inside bar combo setup is a very potent price
action trading (http://priceaction.com/price-action-university/beginners/what-
is-price-action/) pattern, as we can see in the chart below…

http://priceaction.com/price-action-university/strategies/pin-bar/ 6
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar5-1.png)

Double Pin Bar Patterns

It is not uncommon to see back-to-back or “double pin bar patterns” from at

key levels in the market. These patterns are traded just like a normal pin bar,
except they provide a trader with a little more ‘confirmation’ since they reflect
two consecutive rejections of a level…

http://priceaction.com/price-action-university/strategies/pin-bar/ 7
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

(http://priceaction.com/wp-content/uploads/2014/08/pinbar6.png)

Pin Bar Trading Tips

As a beginning trader, it’s easiest to learn how to trade pin bars in-line
with the dominant daily chart trend, or ‘in-line with the trend’. Counter-
trend pin bars are a bit trickier and take more time and experience to
become proficient at.

Pin bars basically show a reversal in the market, so they are a very good
tool for predicting the near-term, and sometimes long-term, direction of
price. They often mark major tops or bottoms (turning points) in a
market.

Not every pin bar is going to be one worth trading. The best ones occur
in strong trends after a retrace to support or resistance within the trend,
or from a key chart level of support or resistance.

http://priceaction.com/price-action-university/strategies/pin-bar/ 8
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

As a beginner, keep your eyes peeled for daily chart time frame pin bars
as well as 4 hour chart time frame pin bars, as they seem to be the most
accurate and profitable.

Longer tails on a pin bar indicate a more significant reversal and

rejection of price. Thus, long-tailed pin bars tend to be a little higher-
probability than their shorter-tailed counter-parts. Long-tailed pin bars
also tend to see price retrace to near the pin bar’s 50% level more often
than shorter-tailed pins, this means they are typically better candidates
for the 50% retrace entry discussed previously.

Pin bars will show up in any market. Be sure you practice identifying and
trading them on a demo account before trading them with real money.
Practice makes perfect.

I hope you’ve enjoyed this pin bar pattern tutorial. For more information on
trading pin bars and other price action patterns, click here.
(http://priceaction.com/price-action-university/)

Price Action Strategies

Support and Resistance Levels Trading Strategy

(http://priceaction.com/price-action-
university/strategies/support-resistance-levels/)

(http://priceaction.com/price-action-
university/strategies/support-resistance-levels/)
What is support and resistance? Support and resistance
levels are horizontal price levels that typically connect
price bar highs to other price bar highs or low... Continue Reading
(http://priceaction.com/price-action-university/strategies/support-resistance-
levels/)

http://priceaction.com/price-action-university/strategies/pin-bar/ 9
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

Pin Bar and Inside Bar Combo Trading Strategy

(http://priceaction.com/price-action-
university/strategies/pin-bar-inside-bar-combo/)

(http://priceaction.com/price-action-
university/strategies/pin-bar-inside-bar-combo/)
Pin bar and Inside bar Combo Patterns A pin bar is a
price action strategy that shows rejection of price and
indicates a potential reversal is imminent. An insi... Continue Reading
(http://priceaction.com/price-action-university/strategies/pin-bar-inside-bar-
combo/)

Fakey Trading Strategy (Inside Bar False Break Out)

(http://priceaction.com/price-action-
university/strategies/fakey/)

(http://priceaction.com/price-action-
university/strategies/fakey/)
The Fakey Pattern (Inside Bar False Break Out) The
Fakey pattern can be best be described as a “false-
breakout from an inside bar pattern”. The Fakey patter... Continue Reading
(http://priceaction.com/price-action-university/strategies/fakey/)

Inside Bar Trading Strategy

(http://priceaction.com/price-action-
university/strategies/inside-bar/)

(http://priceaction.com/price-action-
university/strategies/inside-bar/)
The Inside Bar Pattern (Break Out or Reversal Pattern)
An "inside bar" pattern is a two-bar Continue Reading
(http://priceaction.com/price-action-university/beginners/wh... <a href=)

http://priceaction.com/price-action-university/strategies/pin-bar/ 10
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

False Breakout Trading Strategy

(http://priceaction.com/price-action-
university/strategies/false-break-out/)

(http://priceaction.com/price-action-
university/strategies/false-break-out/)
False Breakout Patterns False-breakouts are exactly
what they sound like: a breakout that failed to continue
beyond a level, resulting in a ‘false’ breakout... Continue Reading
(http://priceaction.com/price-action-university/strategies/false-break-out/)

Pin Bar Trading Strategy

(http://priceaction.com/price-action-
university/strategies/pin-bar/)

(http://priceaction.com/price-action-
university/strategies/pin-bar/)
The Pin Bar Pattern (Reversal or Continuation) A pin
bar pattern consists of one price bar, typically a candlestick
price bar, which represents a sharp reversal... Continue Reading
(http://priceaction.com/price-action-university/strategies/pin-bar/)

About Nial Fuller

Nial Fuller
(http://priceaction.com/contributors/nial-
fuller/) is a Professional Trader & Author who
is considered ‘The Authority’ on Price Action
Trading. (http://priceaction.com/price-
action-university/beginners/what-is-price-action/) He has a

http://priceaction.com/price-action-university/strategies/pin-bar/ 11
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

monthly readership of 250,000+ traders and has taught 17,000+

students since 2008. Checkout Nial’s Forex Trading Course here.
(http://www.learntotradethemarket.com/forex-trading-course)

EDUCATION RECENT POSTS CATEGORIES

Price Action Trading University
(http://priceaction.com/price-action-
university/)
Price Action Trading Strategies
(http://priceaction.com/price-action-
university/strategies/)
Price Action Trading Video Tutorials Price Action Trading Articles
(http://priceaction.com/blog/videos/price- (http://priceaction.com/blog/articles/)
action-trading-tutorials/)
Price Action Trading Videos
Why Price Action Leads The News (http://priceaction.com/blog/videos/)
(http://priceaction.com/blog/articles/why-
price-action-leads-the-news/)

Nial Fuller – Professional Trader
(http://priceaction.com/contributors/nial-
fuller/)
What Is Price Action?
(http://priceaction.com/price-action-
university/beginners/what-is-price-action/)
Price Action – Home (http://priceaction.com/)
Why Price Action Strategies Will Simplify
Your Trading
(http://priceaction.com/blog/articles/why-
price-action-strategies-will-simplify-your-
trading/)
The Simplest Trading Strategy in the World
(http://priceaction.com/blog/articles/simples
t-trading-strategy-in-the-world/)

Contact (http://priceaction.com/contact/) What Is The Best Price Action Trading

Strategy?
(http://priceaction.com/blog/articles/what-is-
the-best-price-action-trading-strategy/)

http://priceaction.com/price-action-university/strategies/pin-bar/ 12
Pin Bar Trading Strategy | PriceAction.com 21/1/19, 10;20 PM

" +

(htt (htt

ps:// # ps://

ww (htt plus

w.fa ps:// .goo

ceb twitt gle.c

ook. er.c om/

com om/ +Pri

/pric pric ceac

eacti eacti tion

onc onc com

om) om) /)
Priceaction.com (http://108.161.139.9/~priceaction/) All rights reserved.

--> -->

http://priceaction.com/price-action-university/strategies/pin-bar/ 13