In the last article, we discussed the daily engulfing candle to draw support and resistance zone and how we can use this level to trade on the intraday level. This Article is about Pin bar in forex. I think this will be most interesting topic Because Most of the traders look for Pin bar as an entry or exit signal but we can use it as a support or resistance and SR Flip
( if you don’t know what is SR flip then comment below I will also write an article about SR flip)
Now come to the topic. We know Pin Bar is a great reversal signal and a daily Pin bar has much worth in the technical analysis. Pin bar shows the market has touched a level and then completely reversed. So the Real Game played here. There must be something interesting or a Big Guy was looking for this level. In trading, we have to follow banks, not retailers. We can use this footprint for our benefit.
First, let me show you which candle is a pin bar and which is not because many people think of a Doji as a pin bar in forex.
Look at the above chart Now you can distinguish between PinBar and Doji candle.
How can we use this candle for our benefit? Many Traders use this candle as an Entry or Exit But we can use this candle to act as a strong Support and Resistance Level and SR flip Level. PinBar low point and PinBar High point act as strong support and resistance. Let me show you on the chart
I have shown you the main reason for writing this article. How can we use Pinbar to draw key levels ( reversal points) for our benefit? This Article is going to improve your trading to a Next Level in forex.
In short, we just have to watch for a good pin bar in history and draw a horizontal line on its tip. This will act as a key level. you can use these levels to trade with Trend.
Pinbar is the most powerful candlestick pattern.
Note: All the viewpoints here are according to the rules of technical analysis. we are not responsible for any type of loss in forex trading.