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007 - Pin Bar Strategy with Trailing Take Profit - Trade Setup

 Price Action Strategy, Pin Bar Variations, Trailing Exit Strategy


📖 What is the Trailing Take Profit Pin Bar Strategy?

This variation adds a dynamic exit to the classic pin bar method. Instead of setting a fixed 1:1.5 R:R target, the position trails by observing bar closes after entry.

The strategy rides momentum only if price continues to confirm the move bar-by-bar.

 

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 (pinbar trading setup)

📌 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: 2 daily bars closed lower.

📌 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: two daily bar closed high.

🛠️ Trailing Exit Rule

📌 Sell Trade:

  • Exit if a daily candle closes two bars below the entry candle.

📌 Buy Trade:

  • Exit if a daily candle closes above two bars of entry candle.

📊 Example Trade Analysis


Pin Bar Strategy with Trailing Take Profit - Trade Setup


SELL SETUP – 27 June 2023 (AUDUSD)

  • Trend: Downtrend
  • Pin Bar: Bearish with long upper wick
  • Entry: Below pin bar low
  • Stop Loss: Above pin bar high

🛑 Trailing TP Logic:

  • First bar after entry: Closed lower (confirming continueation)
  • Second bar: Closed higher than previous
    Price reversed sharply afterward and hit original SL

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: Two Candles closed above entry candle @ 0.6888

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: Two candle closed below entry candle @ 0.6711

SELL SETUP – 10 August 2023

  • Trend: Continuing downtrend
  • Pin Bar: Rejection candle with long upper wick
  • Entry: Below low
  • Stop Loss: Above high
  • TP: two Candle Closed @ 0.6413

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

🔍 Strength of This Variation

  • Captures fast-moving trades
  • Ideal in uncertain volatility zones

⚠️ Limitation

  • May exit early and miss full or predefined target
  • Requires daily chart monitoring (end-of-day candle review)

Conclusion

The Trailing Take Profit Pin Bar Strategy gives flexibility and protection:

  • Follows trend-based pin bar entries
  • Exits before momentum fades, not based on fixed levels
  • Especially useful when markets are choppy or key levels are near

Use this version when you want more safety at the cost of fewer full wins.

 

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