Pin Bar with SAR Strategy For MT4
The Pin Bar with SAR Strategy For MT4 is a delicate system that can generate decent profit for any asset. Usually, the traders have to change the trading method based on the selected asset. Since we have thousands of financial instruments, it becomes hard for us, to choose the right asset.
However, users of the price action trading method rely on the universal formula to trade any form of market. You can trade indices, commodities, stocks, ETFs, Forex, and cryptocurrencies with the PA strategy. But learning about PA signals is tough and most trades mix things up. Those who are suffering to examine the candlestick should use this pin bar SAR strategy. Load up the template and you will notice the pin bars are automatically detected in the chart.
The parabolic dots will give you guidance on whether the bullish or the bearish pin bar is tradeable. Though it is a very easy system, we have to follow some critical rules which will allow us to open trades with confidence. Every system that is back-tested by a pro can secure winning trades. But when you chose a simple edge like this, the implementation of minor rules becomes important.
Not only this, but you must also have strong command over the risk management factor since we all know losses are common. Thousands of people are earning money with great confidence with this simple edge as they can win more than 85% of the time. Let’s see the steps which we need to follow to trade with this amazing method.
Pin Bar with SAR Strategy For MT4 Long trade setup
We have said, this system is easy but you must have strong basic. For the long, we have to find the support level. Support is such an area in the chart that has a cluster of candles below the level. The cluster of candles gives us the perfect indication price may go up. Support becomes much stronger when we have some key metrics. The first metric is the cluster of candles.
The second metrics is the significant lows and highs of the price. Remember these points and find your support level. A small green arrow will appear where the bullish pin bar is formed. But we can’t open the long trade unless the bullish pin bar is supported by a series of dots or the parabolic SAR reading. Open the fresh long at the next candle and adjust the stop loss based on the length of the tail.
Maintain a gap of 3 pips from the tail so that the market doesn’t hunt down the stops easily. For the TP, you have to find the resistance zone. In the short trade setup, you will learn how to find a resistance zone with high accuracy.
When you do the math, analyze the risk level along with the TP. This should be placed in such a method so that the minimum risk to reward ratio for the trades is 1:3. Unless you maintain this number, it will be a big challenge to overcome the losses.
Pin Bar with SAR Strategy For MT4 Short trade setup
You know how to find the support level. But these support levels are not numbers that can create the buying pressure. Support can break due to many reasons and it will then turn into a resistance. A strong resistance should have a strong layer of candles above it. It should have historic value.
This mean, highs, and lows should be present at the resistance zone. When the price of an asset enters the resistance zone, look for the bearish red arrow. The bearish red arrow should appear on the tail of the bearish pin bar. Before the arrow, consecutive blue dots will start forming over the chart and this will give us an indication about the shift in the trend.
In most cases, traders fail to earn money since they don’t adjust the risk to the reward ratio properly. The minimum risk to reward ratio for the trade is 1:3. But elite traders having skills about trend can easily gain 1:6+ risk to reward trade setups. Finding the trade setup is easy but traders lose money as they trade with poor risk to reward ratio.
A system having only a 60% win rate but an excellent money managing technique can yield better results even though this pin bar system has an 85% success rate. The success of any system depends on the trader’s hand. Good investors will also analyze the news metrics and optimize the trade so that they don’t have to lose too much money. Another key thing to remember is leverage.
Increasing the leverage in each trade just because you have insane confidence in the system can cost your capital. So, lower down the risk and try to not impose extreme threats to balance by breaking the safety protocol.
Trade management technique
The success of this system depends on the trade management technique. A trader who can withstand loses is a skilled trader. The novice traders can’t withstand the losses since they don’t know how to scale the trades. You can’t be a greedy trader after spotting the reversal or the pin bar pattern. The first thing that should pop into your mind is the worst-case scenario.
So, how much you are willing to lose completely depends on you. People often become emotional and say they can endure a 5% risk which is insane. In case, you lose 5% from a single trade, you will be severely frustrated and there is no way you can gain back confidence other than taking a 1-week break.
The highest risk per trade for this edge should be 1%. But in some cases, you can increase the risk to 2% but no major news should be scheduled for the next 3 hours. The reason we are avoiding the key news is to protect the trades from the unprecedented false spike.
Get used to this market in the demo platform and see if you can earn money after executing 10 trades. People often become crazy with the system and they start swapping assets and time charts to find one good trade. Remember, the optimum time chart for this edge starts from 1 hour. And you should stick to the asset which you understand.
Download the complete system description and the files here: