Pin Bar Forex Swing trading Strategy For MT4
The Pin Bar Forex Swing trading Strategy For MT4 is an exceptional trading system which is based on a relevant and popular candlestick formation known as the pin bar. The pin-bar is essentially a reversal signal because it reveals strong market behavior patterns which validate the reversal.
The pin-bar is a candlestick with a very long wick in relation to its body - there are different rules which traders use to validate the credibility of a pin-bar. One rule stipulates that a pin-bar is a candlestick formation when the the wick of a candlestick is at-least two times bigger or greater than the length of the actual candlestick body. In truth, there is no need to be so pedantic about the identification of this candlestick formation because that is simply due to the fact that it is visually very apparent when it shows up.
However, because it is a strong reversal candlestick formation pattern it is also important that the location of these candlesticks must be in oversold and overbought regions. When this is the case then the resulting movement thereafter will most likely be a reversal.
This is a swing trading strategy so traders need to bear in mind that they should be very patient when trading this strategy as the movement can go on for days.
The trading rules for this strategy are by no means complicated. The pin bar must form on the 31.8 or the 61.8 percent Fibonacci levels. Then once that has been identified the trader may choose to place a sell stop order below the the low of the bearish pin-bar. Then for a buy entry the trader may place a buy stop order 3-5 pips above the high of the bullish pin bar.
Stop losses should be placed on the other side of the pin-bars. The take profit targets are simple - the trader just need to look at the previous swings. So for a buy entry the trader will set the take profit target at the previous swing high. Then for their sell trades they will need to set their take profit targets at the previous swing low.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
My Recommended MT4/MT5 Broker
