What is Importance of ""PIN Bar Candlestick"" in forex trading?

Aslam u Alaikum! Dear members i hope ap sab thk hon gay, or market main best working kar rahy hon gy. Candlestick patterns ik bhot hi important patterns hai. Agr ap es ko achi tara indentify karty hain to ap maximum advantages available hoty hain. Main aj esi candlestick patterns k related important information share karna chahti hun jis ko ap samjh kar asani sy apni trading ko successful bana sakhty hain. Trading main experience bhot important hai agr ap k pas experience hai to ap achi earning kar sakhty hain trading main experience and knowledge ka hona must hai.

WHAT IS PIN BAR CANDLESTICK PATTERN:

Dear forex member Pin bar candlestick aik eisi candlestick hoti hai, jis ki body minimum hoti hai, is ko AP reversal candlestick bhi keh sakhty Hain. Is candlestick ko properly analyse karna bahut hi important hota hai, or is identification ky liye apko eski different types ko study karna ho ga. Is ki further explanation following hai.

STANDARD PIN BAR CANDLESTICK PATTERN :

Dear members Standard Pin Bar Candlestick ko recognize krna easily hota hai, is candlestick ki body choti hoti hai, or is ki wick kafi lambhi hoti hai. Is candlestick ki wick just one side par hoti hai. Standard Pin Bar Candlestick ko ap further bearish standard pin bar or bullish standard pin bar ko focus kr sakhty Hain agr ap achi tara market main judgment karty hai to ap ko bhot benifits mil rhy hoty hain es ki detailed main ap sy chart main explain karon gi.

PIN BAR WITH NO REAL BODY CANDLESTICK PATTERNS:

Dear Forex member trading main jab ap pin bar ki proper classification kar rahy hoty Hain, to is main ap ko pin bar with no real body bhi available hoti hai, is candlestick main body bilkul hi minimum hoti hai. Agr ap different factors par study kart hain to ap ko maximum advantage available hoty hain. Ap ko humesha apni learning k sath kam karna hai jab ap kpas acha experience ho ga to ap successful trading kar sakhty hain. Is plateform ko ap properly apni trading main include kr Ky apni trading main include krna perfect ho sakhta hai aur bahut zyda faida la sakhta hai.

PIN BAR WITH NOSE CANDLESTICK PATTERNS :

Dear forex members Forex trading market main jab ap is ki further classification karte hain, to definitely is main aik eisi pin bar hoti hai, jis ki 2no side par wick hoti hai, like aik side par wick minimum hoti hai, or dosri side par iski wick zyda hoti hai. Is ko pin bar with nose kaha jata hai. Is ko bhi ap bearish or bullish main categories kar sakhty Hain.


1. BULLISH CANDLESTICK:

Dear forex members PIN Bar Candlestick bullish/bearish currency pairs aur commodities ki price chart main long bullish trend k top par resistance level par banti ha to ye market k bullish trend ko bearish main change kar deti ha. Is par trader ko ""sell ki trade"" active kerni chahye. Es tara ap ko best points par entry mil rahi hoti hai or ap ik acha profit bana sakhty hain.

STOP LOSS AND TAKE PROFIT :

Stoploss ko PIN Bar Candlestick k high sy 6 pips oper place karen aur Take Profit ko next support level per place karen. To essy ap ko ye benifits mil raha hota hai, k ap apny account ko save rakh sakhty hain. Stop loss lgana bhot important hota hai. Es tara jab ap take profit set********
Karty hain to ap ki trade automatically profit main close ho jati hai es tara ap ko maximum advantage mil rahy hoty hain. Or ap market main successful trading tab hi kar sakhty hain jab ap k pas proper experience ho ga.


INTERPRETATION PROCESS :

Dear forex members agr ap market main successful hona chahty hain, to ap ko technical analysis karny hon gy jab ap market main technical analysis karty hain to ik best points par entry ly sakhty hain. Ap ko humesha different important analysis par complete suty karna ho gi ta k ap ko maximum advantage hasil hon chart pattern ko achi tara indentify karny k liye technical analysis karny hoty hain tab ap acha gain kr sakhty hai.

Re: What is Importance of ""PIN Bar Candlestick"" in forex trading?

Pin Bar History & Definition

In his book Pring on Price Patterns, Martin Pring discussed a candlestick formation he coined the “Pinnochio Bar.” The Pinnochio Bar, or pin bar, tends to offer very reliable reversal signals when identified and traded properly. Before we go on, here is a picture of a pin bar:


Pring used the original term “Pinnochio Bar” because this candle is like Pinnochio’s nose. Let’s assume the picture above is a 1 Hour Candlestick. As price moved up during the 1 Hour period, it appeared that bulls were in complete control of the market, but then at some point during this 1 Hour period, sellers were able to come in with great fury and not only hold the buyers off from pushing price higher, but they actually came in and took complete control of the trading period. By the end of the 1 Hour session, sellers had completely erased all of the gains that buyers had made, and they were even able to push price below the period open so that the candle closed red, which proves that sellers are now completely in control of the market.

The psychology behind the candle is that price “lied” to us. It tried to convince us it was moving higher, but in reality, price moved much lower by the end of the session; thus, the name “Pinnochio,” or pin bar. These pin bars are a powerful reversal signal when they form in the correct manner and location.
Not All Pin Bars Are Created Equal

The best pin bars will close below the open if the wick is to the upside, or above the open if the wick is to the downside. In the picture above, you can see that the candlestick closed the 1 Hour trading session below the open; thus, it closed as a red candle. That is what you want to see. If there has been a nice move up in price and the pin bar forms at the top of the move with a big wick to the upside, you want the candle to close red, as in the picture above. However, if price has made a nice downmove and a pin bar forms at the low of the move, with a big wick to the downside, then the body should close green.

If a pin bar does not quite do this, it can still be okay, but be assured that the very best ones will close in the manner just described. And always remember, trading only the best pin bars will offer you the highest probability of trading success.

The body of a pin bar must be no more than 20% of the measurement of the body to the tip of the wick. Therefore, if the body is 8 pips and body to end of wick is 25 pips, the candlestick would not be classified as a perfect pin bar. If the wick to body is 100 pips, then the body should be no more than 20% of 100 pips, or 20 pips. If it is a few pips more, it can be okay, but is should be very close to 20 pips or less.

The nose should not be very long at all. If the nose is to long, the candlestick will form what is called a doji, which is a candlestick with a small body and equal length wicks on each side. A perfect pin bar will have a very long wick on 1 side and a very small wick, or even no wick, on the other side.
Location is of extreme importance. Pin bars should not be traded in the middle of consolidation or a sideways market. Oftentimes in consolidation, pin bars will form, but these signals are much less reliable. Ideally, there should be no candles to the immediate left of a pin bar wick. Instead, there should only be open space. Let’s examine a few pictures.

DON’T TAKE THESE!!!!!!



The above pic is an example of a perfect pin bar forming in the middle of consolidation. Even if the pin bar’s form is perfect, as the one in the above pic is, it has to form in the proper location!! This one does not, so you should not trade it. You must find pin bars that form at the top and bottom of moves.


In the above picture, you can see that the pin bar forms at the bottom of an extended move. This is where you want a pin bar to form.

The next important aspect of the pin bar is making sure it forms at a key area of support/resistance. You don’t want to trade them in random price locations. They should be forming on key areas of support/resistance as identified through common technical analysis. They should be confirming a price reversal.

Entry and Exit

Entry on is always on the break of the nose by 2-3 pips and the stop loss is always placed 2-3 pips beyond the tip of the wick.
Pin Bars are not a magical formula that will produce endless pips with no effort. They are simply a price pattern that when traded properly can combine with other forms of technical analysis to provide very high probable set-ups in the FX Market.