pin bar trading

Hi Monk, Here is a chart i just pulled up at random.There is a signal per rules.Can you tell me where it is ? You wouldn't want to trade this signal and i will tell you
why later. This is just an example.A good exercise for you.Will go over it later together.

Hi tex thanks for that response

Ive put some notes on your chart - i would take the trade (assuming i have identified it correctly - all the others breach one or more of the rules)

a. Is that the analysis correct ?
b. Im not clear on items 5,6,7 on the rules on page 1 (from my understanding the trigger candle has to be a pivot)

Thanks

A. Not quiet Monk but your getting the feel of it.This was not the signal but let's go over it anyway.And i like your notes on your chart too. That way i can look at it.Keep that up.This way when i post the signal on this chart you can point out any questions you have.
1. Your 20 ema and 50 ema is correct.
2. The green candle you pointed out is the highest highest high of the last 5 candles very good. Actually the high of the green candle and high of the red candle
or the same price which is very unusual really. Remember we only look for a signal at the 5 candle high or the next candle after it which i call entry #2.We look for the lower 25% close entry....We want the entry close candle to be in between the 50 and 40 line of our rsi.
3. Rsi did go up over the 50 line of the RSI 5 and back down ---good.
4.The closed entry candle closed below the 40 line---so no trade---i'll post a chart in just a moment.

Here we go Monk.This is a good example. But the signal was late on friday right before broker closing.

Hi tex

Thanks for that i had spotted the signal on the right hand after i was reviewing the post and thought maybe it could have been an entry - guess i need pratice time.

I downloaded OandA so our charts should match

Is this a signal ?

Im not clear on the 25% rule - i have read and re-read the post but its not sunk in yet

For the TP so you move stop 50% of the way to get a be and you use a 1:1 RR ?

(Edit - scrap this as it RSI is above 50 when it should be between 50 and 40 south - grrr !)

Hi Monk,
Now we our making progress ..you got the charts up and it looks like it matches mine .This way i can answer questions 1 or several
at a time until it all comes together. Lets go with #1 question = Not yet a signal but you have the highest of high of the last 5 candles and it did go up over the 50 line of your rsi so that is good. You could add 30 and 70 on the rsi if you want . This is not important right now.
#2 question = You take your mouse, arrow, hand cursor whatever you have and move it on that candle below your red arrow-----do you see the high,low and close price ?
You take the high and low of that candle and see what the range is ....then multiply x75% . Example say we have a candle with 82 pip range from high to low then multiply by 75% = 61.5 Okay you go to the high(price) of that candle minus 61 and see what your price is. This is for a sell .
#3 question = Your risk will either be 1 or 2 candles...Example say we have 60 pip risk.We wait for price to move 30 pips before we bring stops
to break even. Personally i like to wait for the body on the candle to close on that 30 pip distance not a wick. Some traders don't do this.I'm going to post the above chart you mentioned here shortly and i'll post some notes.

Here you go Monk on the lower 25% candle close in detail.Hope this helps.There is other ways too but this is how i do it.

Here you Monk ---Eur/nzd =See if you can find signal here ? I'll check with you tomorrow sometime. Shut eye for me

Hi tex

Please find E/N notes

Monk

Very Good Monk-your getting it. Good job looking at the risk factor--very important to me. Rule #7 also applies. We do not want high high's and Higher low going up if we are sellling. ...we like for it to be smooth sell.Not all traders follow these rules and they do ok.So once you learn the basics of this strategy you can decide on what discretion you want to apply concerning the rules. Also not in the rules....Once i get a signal i want the next candle filled --if not i negate -cancel trade.

I want you to look at Eur/jpy 4 hr chart when you get time. Some traded this one.I'll post it later too.

Hi tex

I do not see a current valid signal on Eur/Jpy as it breaches some of the rules

Monk

Good job Monk.Remember on the daily Rsi we are not worried about the rsi being over the 50 rsi line on the daily unless you think it helps
you be more consistent. We are only concerned about going in the same direction as 4 hr rsi. Just simply get your verticle line on the 4 hr chart and move it over the candle and then switch to daily chart and you should see your rsi.

This was a good time 8 gmt --2 hours after london time.The only rule that didin't apply was that the rsi didn't dip below 50 and back up. I
can see why traders got in this one.

This turned out to be break even trade anyway if covered at half way point. Our money was protected.Will see how the week develops..could be a tough week for trend traders.

Ok Monk the eur/jpy busted up anyway sheesh......Okay look at the gbp/chf --sgd/jpy...remember your risk and time of entry,and all rules.

Hi tex

Ive scanned thru my charts and no valid signals today

That is Ok Monk. You trade what you see and take the best.This one allready had several pullbacks but it was still trending.Maybe a little risky.The low of #1 candle never got breached by a wick.We are not worried what order the other candle wicks are after #1 as long as there above #1 low.Risk was good here.

Another one .This happened at the midnight hour. I did not see any LL and Lh coming down so the uptrend was still in tact imo.This one even bottomed out
below the 30 and just barely got in to my sweet zone...Remember this was the #2 entry .We either trade the #1 low candle or the candle after it. Hope this helps.Some traders look for the tops and bottoms of the rsi...70/30 range .It's not too bad as long as the trend stays in tact. As i said earlier i like the meat or middle of the trend

Nice setups tex - I dont usually trade the sgd/jpy I will have to add that on my list on MT4

That's ok Monk.Trade whatever pairs you like...there may not be trades every week.Watch the spread and red news.These US forex brokers love to increase the spread during this time so just don't let them take it even if you have to take less ...they get enough anyway.