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
✅ 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.