{"id":7354,"date":"2013-09-10T22:07:51","date_gmt":"2013-09-11T05:07:51","guid":{"rendered":"http:\/\/www.tradingheroes.com\/?p=7354"},"modified":"2024-03-27T17:14:36","modified_gmt":"2024-03-28T00:14:36","slug":"getting-started-with-pin-bars-in-forex-trading","status":"publish","type":"post","link":"https:\/\/www.tradingheroes.com\/getting-started-with-pin-bars-in-forex-trading\/","title":{"rendered":"The Beginner’s Guide to Trading Pin Bars"},"content":{"rendered":"

\"Trader<\/p>\n

When you buy something through one of the links on our site, we may earn an affiliate commission.<\/div><\/p>\n

Are Pin Bars<\/strong> magic?<\/p>\n

There is a lot of voodoo out there when it comes to candlestick chart patterns. Some of it is very useful, but most of it is hype.<\/p>\n

So this is one post in a series of posts exploring candlestick patterns that are actually practical.<\/p>\n

More importantly however, we will go into WHY they are useful trading clues.<\/strong><\/p>\n

We won't just settle for:<\/p>\n

Some rice trader dude 300 years ago said that they work, so we are just going to listen to him.<\/p><\/blockquote>\n

These patterns are not trading systems in themselves. Be very clear on this point.\u00a0<\/em><\/p>\n

However, when they appear in the right context, they can be useful.<\/p>\n

…and the best part is that they can easily be backtested.<\/p>\n

But not every Pin Bar is a potential trade.<\/p>\n

In this post we will take a closer look at Pin Bars.<\/strong><\/p>\n

They are also known as kangaroo tails, hammers and probably some other names that I am not familiar with.<\/p>\n

The term Pin Bar was first coined by Martin Pring<\/a>. I initially thought that it was called a Pin Bar because it looks like a pin.<\/p>\n

But he actually called it that because it is a “Pinocchio Bar” or a bar that is telling a lie.<\/p>\n

Here's what he means by that…<\/p>\n

What Pin Bars\u00a0Look Like<\/h2>\n

Some people try to get all crazy\u00a0and define a Pin Bar with a super strict, complicated formula.<\/p>\n

The wick has to be twice the length of the body, there cannot be a wick on the other side…blah, blah, blah.<\/p>\n

They also overanalyze the “nose” and everything about the candle.<\/p>\n

In my opinion, you should keep the definition as simple as possible.<\/p>\n

More on that in a bit.\u00a0<\/em><\/p>\n

But before we get into some examples of Pin Bars, if you are not familiar with candlesticks, the diagram below shows what they represent.<\/p>\n

On most Forex charts, a green candle means that the close was higher than the open, and vice versa for a red candle.<\/p>\n

\"Candlesticks<\/p>\n

Remember that trading is not an exact science and general concepts will get us much further than absolutes, so we are just going to say that a pin bar is any candlestick with along wick.<\/strong><\/p>\n

Here are two examples:<\/em><\/p>\n

\"Pin<\/p>\n

I personally look for\u00a0a wick that is 66% of the body, just so that I have something to put into my Pin Bar Alert Indicator<\/a>.<\/p>\n

But I don't always stick to that definition.<\/p>\n

You should be willing to be a little flexible.<\/p>\n

Backtest a few values<\/a> and find out what works best for you.<\/p>\n

Why Pinocchio Bars Happen<\/h2>\n