How to Trade Fake Pin Bars
How to Trade Fake Pin Barsing Halal explained by professional Forex trading experts the “How to Trade Fake Pin Bars” FX trading team.
How to Trade Fake Pin Bars?
Pin Bar, which is short for ‘Pinocchio Bar,’ is a single candlestick setup that clues price action traders into potential reversals in the market. A pin bar is an elongated wick that ‘sticks out’ from price action. Traders will usually look for one-sided wicks that are two times the size of the candlesticks body.
When traders see elongated wicks sticking out from price action, they can look for the momentum that created the long wick to continue by looking for a reversal.
So if a trader sees a long wick sticking out below price action; they can look to go long. If a trader sees a long wick sticking out above price action, they may want to look to go short.
But not all long wicks are created equal. As a matter of fact, many of these long wicks will not be Pin Bars at all; but that does not mean that they can’t be used by Price Action traders. This article will walk through how to trade ‘fake’ Pin Bars, or long wicks that do not stick out from price action.
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).
How to Trade Fake Pin Bars Conclusion
For more information about currency trading brokers visit TopForexBrokers.com Forex brokers comparison website, Tip ForexSQ.com foreign exchange trading
experts please by share this article about How to Trade Fake Pin Bars