Price Action, Pin Bar Strategy, Forex Daily Strategy, Trend Trading
📖 What is a Pin Bar?
A Pin Bar is a powerful price action candlestick
pattern that signals potential reversals. It features a long wick (tail)
rejecting a key price level and a small body. When used with the trend
on daily timeframes, it becomes a high-probability trading signal.
✅ Strategy Conditions
To qualify as a valid trade setup:
- Sell
Pin Bar: Must appear during a downtrend.
- Buy
Pin Bar: Must appear during an uptrend.
- The wick
must reject a key level (support/resistance or supply/demand zone).
- The body
should be within the last third of the entire candle range.
🕒 Time Frame
✅ Use this strategy only on the Daily
chart.
This filters out noise and ensures cleaner signals.
🔧 Trade Setup Rules
📌 For a Sell Pin Bar
(Bearish Reversal):
- Trend
must be down.
- Pin
bar’s wick must be long at the top rejecting higher prices.
- Entry:
Below the low of the pin bar.
- Stop
Loss: Above the high of the pin bar.
- Take
Profit: 1:1.5 Risk-to-Reward (R:R)
📌 For a Buy Pin Bar
(Bullish Reversal):
- Trend
must be up.
- Pin
bar’s wick must be long at the bottom rejecting lower prices.
- Entry:
Above the high of the pin bar.
- Stop
Loss: Below the low of the pin bar.
- Take
Profit: 1:1.5 Risk-to-Reward (R:R)
📊 Example Trade Setups:
AUDUSD Daily Chart
Here are real trade examples showing valid and invalid Pin
Bar setups:
✅ SELL SETUP – 27 June 2023
- Trend:
Downtrend
- Pin
Bar: Rejected resistance with long upper wick
- Entry:
Below pin bar low
- Stop
Loss: Above pin bar high
- TP:
1:1.5 R:R reached
✅ BUY SETUP – 10 July 2023
- Trend:
Uptrend
- Pin
Bar: Rejected support zone with long lower wick
- Entry:
Above pin bar high
- Stop
Loss: Below pin bar low
- TP:
1:1.5 R:R reached
✅ SELL SETUP – 20 July 2023
- Trend:
Strong downtrend
- Pin
Bar: Clear rejection from resistance
- Entry:
Below pin bar low
- Stop
Loss: Above pin bar high
- TP:
1:1.5 R:R reached
✅ SELL SETUP – 10 August 2023
- Trend:
Continuing downtrend
- Pin
Bar: Rejection candle with long upper wick
- Entry:
Below low
- Stop
Loss: Above high
- TP:
1:1.5 R:R achieved
❌ INVALID SETUP – 21 June 2023
- Pin
Bar Type: Bullish (Buy Setup)
- Trend:
Downtrend
- ❌
Invalid because a buy pin bar formed against the trend
- Skipped
due to violation of trend condition
💡 Key Tips for Success
- Combine
with support/resistance or trendlines for higher accuracy.
- Look
for clean, obvious pin bars – long wicks and small bodies.
- Avoid
trading inside ranging markets.
✅ Conclusion
The Pin Bar Strategy on the Daily Chart is simple yet
highly effective when applied with trend confirmation. Stick to the rules:
- Only
trade with the trend.
- Maintain
a 1:1.5 risk-to-reward.
- Use
strict entry/SL/TP levels based on the pin bar’s structure.
Discipline, trend filtering, and patience are the
pillars of making this price action setup profitable over time.
