Pinbar and Bollinger Band Forex Chart Patterns Strategy For MT4
The Pinbar and Bollinger Band Forex Chart Patterns Strategy For MT4 is an effective strategy which works on the four hour charts. The simplicity of this strategy is welcoming because it does not over-complicate the selling and buying decision making process.
It is based on a particular candlestick pattern - which is popular in trading - known as the Pin bar candlestick pattern. This candlestick pattern tends be a sound indicator of an impending reversal being likely - the probability of a market reversal is correlated to the location of the pin-bar.
If the pin-bar forms in areas of oversold and overbought regions then it is likely the market will reverse. The way in which oversold and overbought regions are identified in the system is through the use of the bollinger bands when the pin bar pattern forms on the upper or lower bands of the BB. What is great about this system is that is not complicated by any stretch of the the imagination. Even the entry rules for this strategy are simple.
For the sell entry rules for instance there needs to be two conditions which have to come into effect before a sell trade is placed. Condition one states that there must be a Pin Bar formed on the upper band of the Bollinger Bands indicator. Then condition two - which triggers the signal - states that the trader should initiate a sell order when the JMA Starlight indicator has crossed the 5 Exponential Moving Average indicator to the downside.
The rules for the long entry are similar - just opposite - meaning that the Pin Bar has to appear on the lower band of the Bollinger Bands indicator and the trader may only buy once the JMA Starlight indicator crosses the 5 EMA to the upside. But the paramount and primary requirement of this strategy is that the pin bar must touch either the upper or lower bands of the Bollinger Bdands. The second part of the rules are not applicable if the first condition is not met. Stop losses should be set to 5 pips outside of the Bollinger bands channel. Then the profit targets are set to 35-60 pips.
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