Price Action Pin Bars explained by professional Forex trading experts the “Price Action Pin Bars” FX trading team.

Price Action Pin Bars

here are numerous price action mechanisms that traders use in attempt to get the odds on their side as well as possible.

One of the more desired conditions that traders can look for are short-term reversals in price. Candlesticks themselves can help us see some of these potential reversals, with the Pin Bar.

Pin bars, which are short for ‘Pinocchio,’ bars, attempt to find candle wicks that ‘stick out,’ from price action in an effort to capitalize on particularly volatile market conditions.
In the candle displayed above, drawn inside the rectangle, notice that this would be a decline in price as the currency pair closed at a lower value than it had opened. The difference between the open and close is often referred to as the ‘candle body.’ The skinny area above and below the candle body are commonly referred to as ‘wicks.’

Also notice that price actually proved quite volatile during this period, and this can be seen from the ‘wicks,’ of the candles. Although this candle shows price moving lower from the open to the close, the wicks can show the astute trader that price had actually climbed at one point! This can be seen from the wick atop the candle.

As price was moving higher than the candle open at the time, this would have appeared as a ‘bullish,’ candle. But that was a temporary movement as negative momentum came back in the pair only to push price lower; much lower in fact. So low that price actually began increasing, exhibiting that the pair may have been oversold.

Price Action Pin Bars Conclusion

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