Pin Bar Reversal Strategy

Pin Bar is a unique candle which shows a clear rejection of a price level and often followed by a large directional move opposite to the direction of the rejection.

Team Up for Best Result [握手] 

We cannot depend on Pin Bar alone to trade the reversal. Thus, trade this strategy only when a valid Pin Bar reversal happens at/near the support/resistance area for higher probability of trend reversal. As a word of caution, I wouldn't trade on Pin Bar Reversal unless it meets at least one of the 5 criteria below:

1. Major Support/Resistance level

2. Up/Down Trendline

3. Fibonacci Retracement level

4. Upper/Lower Bollinger Band

5. Moving Average

Bullish Pin Bar + Moving Average Support + Lower Bollinger Band:

Bearish Pin Bar + Moving Average Resistance + Upper Bollinger Band:

Bullish Pin Bar + Fibonacci Retracement:

Trading Plan [思考] 

After we found the valid signal for Pin Bar Reversal Strategy, we can refer to the Pin Bar to setup the Entry & Stop as shown in picture below. I will target a 1:1 Risk:Reward for the setup. For more aggressive trader, they can ride with the trend using trailing stop. 

Besides Pin Bar, you can also use the same strategy with another reversal candlestick pattern.

Best Friend of Pin Bar [安慰] 

Engulfing Candlestick

In the absence of Pin Bar, it can be replaced by Engulfing Candlestick Pattern. Pin bar can be formed by merging the 2 candles from Engulfing Candlestick Pattern.

Happy trading! [哇塞]