Augubhai's diary and notes

[akhill]

As per my understanding of pin bars, It is applicable only at the opening time of the trading day. It is not applicable all through the day.

Moreover, many websites are suggesting it only for forex trading, but not equity or commodity trading.

I am just trying to assess your system and understand it. If you feel my posts are intruding your privacy, please let me know.

I will post more of my understandings on Pin bars in this thread if it is ok with you. It will be beneficial to both of us i hope.

 

[akhill]

one of the experts mentioned this

The Pin Bar is only part of the plan, what you now have is an excellent entry strategy for a forex trading system. To complete this system you still require a Pin Bar Money Management Strategy, a Pin Bar Trade Management Strategy and a Pin Bar Exit Strategy.
Once you have established these criteria, there is one final thing to do Back Test! Back Test the system and confirm that you have a profitable system.

As said above, did you ever back test pin bars ??

Pin bars just by themselves cannot be used to enter a trade it seems. So, I advise you to consider atleast two other indicators when you are entering a trade based on pin bars.

 

[akhill]

More


What separates a Pin Bar from a Fake Pin Bar?
The difference between a Pin Bar and a Fake Pin Bar is determined by recent price action.
If the long wick sticks out from recent prices, that is a Pin Bar. This is the ‘lie’ that the market may be telling us: That a movement to a previously untested level has brought a new group of buyers (or sellers in the case of a bearish Pin Bar).
If the long wick does not stick out from previous price action; they are not a genuine Pin Bar, but rather ‘Fake Pin Bars.’ The picture below will illustrate with further detail:

I guess you are encountering more of fake pin bars than original ones. Check that too once. If you can post your today's charts and where you entered for your trades, we can do a quick postmortem to find out what went wrong and why it went wrong.


As per my assumption, Pin bars usually work only at support and resistance levels, but not at every point of the price.

 

[augubhai]

More


What separates a Pin Bar from a Fake Pin Bar?
The difference between a Pin Bar and a Fake Pin Bar is determined by recent price action.
If the long wick sticks out from recent prices, that is a Pin Bar. This is the lie that the market may be telling us: That a movement to a previously untested level has brought a new group of buyers (or sellers in the case of a bearish Pin Bar).
If the long wick does not stick out from previous price action; they are not a genuine Pin Bar, but rather Fake Pin Bars. The picture below will illustrate with further detail:

I guess you are encountering more of fake pin bars than original ones. Check that too once. If you can post your today's charts and where you entered for your trades, we can do a quick postmortem to find out what went wrong and why it went wrong.


As per my assumption, Pin bars usually work only at support and resistance levels, but not at every point of the price.

Hi Akhill,

Just saw your post. As I mentioned, earlier I did not have a strategy for today. I was playing by the ear. Didn't work out well, did it?

The Pin Bar stuff was just something that I noticed while looking at the charts at the end of day. I was not trading pin bars either yesterday or today.

The Pin Bar pattern is a great pattern. The best pin have long tails, and occur at significant support/resistances, and are accompanied by considerable volume. They can occur anytime during the trading day, in any time frame.

 

[augubhai]

NF intraday trades:

1. long 5474,

Brokerage of 2 points per trade not deducted.

 

[augubhai]

NF intraday trades:

1. long 5274, exit 5271 = -3
2. short 5271,

Brokerage of 2 points per trade not deducted.

 

[augubhai]

NF intraday trades:

1. long 5274, exit 5271 = -3
2. short 5271, exit 5274 = -3

Brokerage of 2 points per trade not deducted.

 

[augubhai]

NF intraday trades:

1. long 5274, exit 5271 = -3
2. short 5271, exit 5274 = -3
3. short 5270,

Brokerage of 2 points per trade not deducted.

 

[augubhai]

NF intraday trades:

1. long 5274, exit 5271 = -3
2. short 5271, exit 5274 = -3
3. short 5270, exit 5269 = +1

Brokerage of 2 points per trade not deducted.

 

[augubhai]

NF intraday trades:

1. long 5274, exit 5271 = -3
2. short 5271, exit 5274 = -3
3. short 5270, exit 5269 = +1
4. long 5269,

Brokerage of 2 points per trade not deducted.