james16 Chart Thread

Hi Folks,
I looking for some posts or information on pin bar PA. I know there is an number of examples in the early posts but im still unsure as to the difference between an A, A+ and A++ pin bar i.e. the first bar open close relative to the pin? the third bar open and close relative to the pin and the first bar? etc. I know that these should not be used in isolation and i dont intend to but as a PA confirmation to other signals i want to know whats is the best of the best pin bar so i can wait in the long grass and look for my 1-3 setups a month.

Thanks Donkey - im still watching that daily GBP/AUD - the initial pin bar didnt form but there is another potential on the cards!

"Newbie trying trading with a small account but with a big account mentality"

Red.

hi redd,
i want to show you something if you see it carefully then you will understand what you want to know.
The Pin Bar Trade Setup
The pin bar trade setup is the most effective price action trade setup there is. It is an extremely powerful setup when used correctly. Many trader only trade off of a pin bar formation and they are very successful traders. In this lesson you will learn what a pin bar is, the characteristics of one, how to trade it and the difference between a great pin bar and an average one.

How To Trade a Pin Bar

Before you even think about making a pin bar trade you need to make sure it fits the characteristics of a pin bar that were stated above. That is the first thing you should do when you think you see a pin bar has formed. Once a pin bar has been confirmed you can begin to look at the other parts the trade needs to be taken.

The next thing that should be looked at before a trade is whether or not the market is trending or is ranging. Knowing this will better help you understand what the market is doing and will help you accurately read the market. A pin bar that has formed with the trend are the most effective trades but you can also look for trend reversals and pin bars in a ranging market. Trading against the trend and in a ranging market is going to trickier but can also pay off big time.

This chart is a downtrend and a pin bar forms rejecting higher prices and this indicates it is ready to continue its trend downward.

http://tradingwithpriceaction.com/wp...with-trend.png

On this chart below we can see that a pin bar formed after a major downtrend. The market then reversed and shot up. This is the power of a pin bar.

http://tradingwithpriceaction.com/wp...nter-trend.png

With the chart below the light blue rectangle represents the trading range. Trading when the market is ranging is very risky but can also be very profitable. As you can see just on this chart there was one pin bar that didnt work out and one that did. The one that did it formed at the bottom of the range and the price went all the way to the top of the trading range.

http://tradingwithpriceaction.com/wp...ar-ranging.png

Support and resistance zones are also key when trading pin bars. The reason for that is because at these zone is where we look for pin bars to form. These zones are excellent areas for the price to reverse because in the past the prices have respected that zone.

Wait for price to get near a support and resistance zone then look for a pin bar formation. By trading with support and resistance you are greatly enhancing your chances for a successful trade because you are reading what the market is giving you.

When prices move up to a resistance zone you will be looking for a bearish pin bar. This is your signal to enter the trade short.

With the chart below you can see that price moved up to the resistance zone and formed a pin bar. The wick went through the resistance zone which shows that the market rejected the higher prices. Then the market reversed into a downtrend.

http://tradingwithpriceaction.com/wp...r-with-res.png

When prices move down to a support zone you will be looking for a bullish pin bar formation for you to go long.

In the chart below you can see that a pin bar formed with a huge wick which penetrated the support zone. This is very good sign and shows that the market has run out of steam and is ready to reverse trends just as this one did.

http://tradingwithpriceaction.com/wp...t-support1.png

The best time to enter a pin bar trade is when you have the trend in your favor and it has formed right on a support or resistance zone. This is called trading with confluence.

Trading with confluence is the most important thing when it comes to having highly successful trades. It means that you have at least two things in your favor. We can use in trading because we can often have more than two reasons to enter a trade. Those reasons could be with trend, at support or resistance zone or a trade setup.

When you are able to get all three of those things in your favor you can expect a much higher win percentage on your trades.

This is a great example of a trade that has everything working for it. A bullish pin bar has formed at a support and resistance zone and the market is in a uptrend. All three are working in your favor which makes for a very high probability trade setup.

http://tradingwithpriceaction.com/wp...confluence.png

Entry and Stop Loss Placement
The entry point and the stop-loss placement are very important to figure out before you make any trade. This way you know your risk that you are taking and know where your trade will be entered.
The entry point is very simple to find for a pin bar setup because you place it right below the low of a bearish pin bar and right above a bullish one. The best way to do this is setup a sell or buy stop order. What that means is that once the price gets to a certain level your trade will be triggered and you will be in the trade. This provides the most accuracy when trading.

Simple diagram of where to place your sell and buy stop orders for a pin bar trade.

http://tradingwithpriceaction.com/wp...nbar-entry.jpg

The stop-loss is also very simple to find for a pin bar trade. You place the stop-loss right above or below the wick of the candle. Placing the stop-loss here will give the trade space to work itself out and hopefully move in the direction you had hoped.

Another really easy to follow diagram of where to place your stop losses when trading a pin bar.

pin bar is a very valuable tool when it comes to trading price action and Forex in general. It is a trade setup that has proven over and over again to be a reliable signal to trade. If you take your time and learn the ins and outs of a pin bar it is really the only trade setup you need to be a successful and profitable trader.

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Download over 2900 forex robots and indicators for 100% FREE at: http://mt4talk.com/

Hi Raselnet,
What a fantastic detailed and clear response, thank you for taking the time to come back to me, ill certainly take all this advice into my trading....of course in the interest of constant learning i have one question:
You say towards the end of the post that the entry point should be simple as you place it "right below the low of a bearish pin bar and right above a bullish one", but i thought the teaching here was to enter after the confirmation bar (third bar), which is after the pin bar? As a result, if the pin bar was a good signal the market would have already risen or dropped so one could not get the entry at this level............maybe im missing a piece of information....should you take the trade after the pin bar closes or wait for the next confirmation bar?

Red.

Hi,

The previous market story and the place where the PIN bar formed were make the PIN bar as A or A+ or A++.

Adhav

Hi All,

Nice Pin bar

Hi there everyone,

I was wondering whether anyone tried to apply Pin Bars on lower timeframes with any success. The reason for me asking is that it seems that they should work well on lower TF as long as they're used with higher TF Support/Resistance, but most of stuff posted here are from Weekly,Daily, H4 TF thus there is no data to compare to. (I do understand that the higher TF the more strenght the candle/bar has hence the A++ setups would be found on Daily etc.)

for example ...



Anyone care to reply? thx

Hi Adhavan,

I dont know what data feed are you using, mine haven't closed yet (another 40 min to close).

Hi Folks,
Im new so go easy on me if im way off but here are a few daily's im watching, let me know what you think of my analysis:

- EUR/JPY - 1D - Bearish engulfing, at fib level and an old S/R - possible short?
- GBP/AUD - 1D - Potential pin bar, at a tending resistance level, and a BRN
- GBP/JPY - 1D - Bearish engulfing, Fib confluence, recent S/R level
- EUR/AUD - 1D - Pin bar, Fib and old S/R level

I would appreciate the feedback here as im struggling with self doubt....or is that just call inexperience!

Red.

Thanks for your information i will take care it as you told but i think you are missing something..

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Download over 2900 forex robots and indicators for 100% FREE at: http://mt4talk.com/

Hey Red

Welcome to the thread

These bars may have looked different when you posted but i'll give you some direction based on how they are now. Still a few hours before closes though

gbp-aud would have to close much lower to form a pinbar. Remember a pinbar must have the open and close within the prior bar. We have strong FTA just under us where the previous breakout was. Here was my trade on that one . That same area needs to be watched and I'd be more excited about shorts if price can close under an area like that. I'll be watching it though

http://www.forexfactory.com/showthre...74#post8060674

gbp/jpy is almost forming a wick type play. I'm guessing price was much lower at the time you saw it. For it to be a beob we need that close near the bottom 1/4 of the bar. Strong support lays just under us here too though



http://www.forexfactory.com/showthre...74#post8060674

eurjpy- This one's an outside bar now but notice it sitting right on a previous box. THat's a tricky area to trade into since we have no space. As a new trader i'd highly recommend looking for space with your trades when starting out. Here is a video on space vs traffic if you haven't seen it



eur/aud is not quite a pinbar yet either since the close is not within the previous bar(at this moment). But this also has a lot of traffic as price is choppy in a sideways market like eur/jpy. These will give you trouble if you aren't careful. This is something I avoid when you have no further confluence or story

Hope this helps and again welcome
Mike

Hi Mike,
Thanks, very helpful, that reply was a bit of an eye opener for me, ill stick to the studying for a while!

Red.

I wanted to send out another update on the new site. We are literally around the corner at this point. Here is just a little note about some of the new exciting changes to come.
This is a message from James and I've also included a link to a video from Jim too since it's been awhile. Enjoy and as always please email your thoughts/comments good and bad we love to hear it all. Thank you all for your patience and I hope this email finds you well.
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Its with great excitement and anticipation that I get to announce an event that will change the Forex community forever. The new James16 Group website is going to show every trader on the planet how things should be done. For ten years we have been a shining star of honesty and integrity in a dark and ruthless world of thieves and scam artists.

We are not launching a trading website. We are launching A WAY OF LIFE that you can be a part of the rest of your life.

We are going to change the world and when I say we I MEAN US. YES YOU.

With the launch of our new website, we can take new and struggling traders and give them a real chance at success. In fact, we are so confident of that we will guarantee it.

The group will now be far more than just a trading website so allow me to describe in detail what is coming.
The James16 Group has always been a family, but we are going to take that to a whole new level.

All lifetime members will have the financial backing of the family as a whole. YOU, your spouse and immediate family will be financially protected in case of death, illness etc. All James16 Group family members will have the peace of mind knowing your family is there for you in your deepest need. Never underestimate the power of this groups family members.

The new site will make public what was always private. A thriving charity foundation. We will focus on children.

The new site will have a real estate section that by itself can and will change lives. YES YOURS.

The new site will have a thriving section that will follow me and my personal spiritual pursuits. Some of you have expressed a deep love for this section in the past and we are going where few have gone before. lol.

OK OK THE TRADING.
Folks its impossible for me to get into everything but we are going to have full live trading. The where is price going series will become a live daily exercise along with all the great things you are familiar with from mike. Also we are going to have a complete stock and option section with its own instructor. You are going to learn to REALLY TRADE.
The things you are going to learn trading options are going to blow your mind and it can be done in your IRA or even 401k.
We will follow stock portfolios with covered calls, spreads etc.. Its not hard and you will be a real pro within a year.
We are going to continue to spit in the eye of scammers and im truly excited to announce the following.

The group has always been free after a year and that wont change. The new site will have a monthly fee of 199 a month for 12 months or a one time payment of $1548.

WE HAVE DECIDED TO EARN OUR FEE FROM LIVE TRADES instead of charging for them on a monthly basis.
There will be no fee for our live trades unless you make money and even then it's up to you.
If you have a 500 account and we make you 50 bucks in a month then you decide what we get. 10 percent? 5? 20?
If you have a 1 million account and we make you 100,000 you decide what we get. For ten years, we have walked the talk and now were going to another level of integrity and honesty with our members.
We can't think of a better way to say to our family and the trading community at large that the James16 Group is the place to be if you want to learn to trade and truly have a home away from home for your investment pursuits.

-Jim
A link to a where is price going video



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I wanted to send out a clarification email. Apologies if you do not want to receive this please let me know to remove you as that is not the intention. All current paying members are GRANDFATHERED in at the $129 rate. So if you paid 1 month or you are on your 8th month you will only be charged at the $129 rate to be fair. And you will be lifetime after your 12.

Also if you are a lifetime member and there are a LOT of you you will not pay another DIME. We always promised we would do right by our lifetime members and that will not change. When the new site launches new members will be charged at a rate of $199 a month and after 12 months free for life. Or have the option to pay at a discounted rate up front of $1548(which is @ the current $129 a month we offer). The only additional fee will be OPTIONAL with the live trade calls for lifetime members ONLY will have access to this. We ask that hey if we do right by you you'll do right by us. As Jim said we make you some great money you'll look to do the right thing by us. Who the heck does that? We are going to

Hope this clarifies things
Mike

I can't begin to explain how much i prefer this analysis than multiple indicators on my charts. Im quite new to all of this but it is seriously refreshing than a chart full of indicators that are all lagging price action.

Cannot wait for the new website already a member of the old.

Thanks again to everyone involved!

Oh my God! Just as I've resigned myself to focussing the next year on learning to trade, along comes an offer I can't refuse! Did I miss the link for the site in my excitement?

Cheers Mike

Hope im gona be a part of that group soon

Very exciting news!!!!

Sounds like a very positive move forward

Here's chart I'll be watching next week. A lot of confluence at 90.00 on NZDJPY.

two weeks later ...

I am looking into the concept of supply and demand and find it interesting. It seems like it is a more intuitive way of looking at the markets and puts a layer on support and resistance. I would try to use that as additional confluence to PA and see what happens. Though I study quite a bit I only take those concepts seriously that contribute and give an edge to the existing strategies that I am using.

For some reason to build upon the existing strategies is very important to me to retain the edge. After I have crossed over from trend trading I have NOT had that many strategies that can add seamlessly to PA and support and resistance.

I happened to stumble across supply and demand exactly when I started to think about who moves the markets and the thought process behind it. There is a another common place idea that can give an edge and will reveal that at some point of time.