The " pin " bar that hit 1.17 several days ago suggests that the pair is seeking that level again before a rapid decline back to 1.10 . Does anyone have a strategy for using pin bars as a reversal or continuation ?
Trading Consultants Inc JJG
Looking towards tomorrow’s ECB decision, Credit Suisse economics team expects Draghi to sound dovish, and doesn't anticipate an explicit extension of the bank’s QE program until December. Strategy-wise, CS global FX strategy team outlines three likely scenarios for EUR/USD following the decision and how to trade around each of them. 1. No policy/ guidance change (EUR bullish): "We would expect EURUSD to push into its August 1.15-1.17 range. This is an area that we would look to re-engage with downside structures. We see 1.15 as a critical level for the ECB and would expect a fresh wave of dovish commentary above ... (full story)
DislikedExactly, I use pinbars quite often as entry signal for potential reverse movement. Stop 10-12 pips beyond the tail. It is even stronger signal when near some key technical level. It works out well 70% of the time. I encourage everyone to use pinbars at the top or bottom of the market (or day