Pin Bar System (Nifty sell trade with 24 pts stop loss closed in Profit of 333 pts :)
- Thread starter Nehal_s143
- Start date
- Tags afl bar nifty pin
Re: Pin Bar System (Nifty sell trade with 24 pts stop loss closed in Profit of 333 pt
Well,
There is quote from Market wizard Mark Mcrae that anything that works on daily/weekly charts will definitely work on Intraday charts but the opposite may not be true
I will give u recent example on how to use the PIN BAR STRATEGY for INTRADAY
For last two days nifty is in uptrend as FII's and big traders are in buying mode but on charts u can see their buying Zones and can make decision with the trend only by looking for Pin Bars in this case....( CHECK THE IMAGE)
The Pin bars are nothing but a upthrust/downthrust where after their formation price moves in opposite direction....( not 100% true but works 70%), sometimes called as PIN BAR REVERSALS,
WHEN....only if it comes at some support or resistance levels and even pivot levels, or pierces the lower/higher bollinger bands, for currency traders if it comes at Fib levles...
BUT..if it comes at trendlines or gap fills it considers to be in trend continuation ....
So JUST SEE WHERE IT IS FORMED>>>ANYWHERE BETWEEN THE SUPPORT RESISTANCE LINES BUT NOT DURING TRENDLINES >>>BEWARE IT COULD BE FAKE...OR THE PROBABILITY IS VERY LESS
NOW where to use them
Normally it forms during trending, volatile and highly liquid markets where the instruments/counters are active....
Examples are
EQUITY:- nifty futures, tata steel, reliance, tata motors, orchid chem, deltacorp etc....
COMMODITIES:- gold, silver, crude oil etc..
FOREX:- USD-EUR, USD-GBY, USD-INR, EUR-GBY, USD-YEN
For intraday traders the break of the high of pin bar is ur entry with stop below the low of the bar.
THE REASON:- As per Nial fuller
PIN BARS FORMED AT HIGHER TIMEFRAMES ARE NORMALLY HIGHLY PROBABLE THEN INTRADAY TIME FRAME
so any body using this in intraday should keep in mind the volatility and the strict stoploss in place ...
HOW TO FIND THEM;
well if u dont have a special afl...it is nothing but SHOOTING STARS at resistance and HAMMER at Support somtimes it forms HANGING MAN or DRAGON FLY DOJI or GRAVESTONE DOJI...
but keep in mind they should at appropriate places.. as explained above
AS seen in IMAGE
Case 1:- after the gap formed it did not fill the gap as it was a breakout gap... and so it formed a dragon fly doji at 5566...confirming the uptrend can be intact ( AS I DID IT YESTERDAY)
Case 2 : in this case if formed at Fridays pivot low at 5615 as the market took that a trendline line support from there it went ahead...and the exit was at 5640 considering the resistance due to previous pivot high..in this case it looks like Hammer( AS I DID TODAY)
Case 3: after 11 am today we see another pin bar at the same trendline as in case 2 thus making a trend continuation where the exit was a today's high of 5700....major daily resistance lvl ( MISSED THE COMPLETE RALLY)
case 4:- after touching its reistance again at 5700 it formed a shooting star that can push the prices lower as expected so one can take a short in mininifty fut at that moment thus making a quick 20 points gain ( AS I DID TODAY)
it takes considerable amount of time and patience and discipline and skill to trade in this manner
( IF U CANT SEE ZOOM IN DIFF WINDOW)
Well,
There is quote from Market wizard Mark Mcrae that anything that works on daily/weekly charts will definitely work on Intraday charts but the opposite may not be true
I will give u recent example on how to use the PIN BAR STRATEGY for INTRADAY
For last two days nifty is in uptrend as FII's and big traders are in buying mode but on charts u can see their buying Zones and can make decision with the trend only by looking for Pin Bars in this case....( CHECK THE IMAGE)
The Pin bars are nothing but a upthrust/downthrust where after their formation price moves in opposite direction....( not 100% true but works 70%), sometimes called as PIN BAR REVERSALS,
WHEN....only if it comes at some support or resistance levels and even pivot levels, or pierces the lower/higher bollinger bands, for currency traders if it comes at Fib levles...
BUT..if it comes at trendlines or gap fills it considers to be in trend continuation ....
So JUST SEE WHERE IT IS FORMED>>>ANYWHERE BETWEEN THE SUPPORT RESISTANCE LINES BUT NOT DURING TRENDLINES >>>BEWARE IT COULD BE FAKE...OR THE PROBABILITY IS VERY LESS
NOW where to use them
Normally it forms during trending, volatile and highly liquid markets where the instruments/counters are active....
Examples are
EQUITY:- nifty futures, tata steel, reliance, tata motors, orchid chem, deltacorp etc....
COMMODITIES:- gold, silver, crude oil etc..
FOREX:- USD-EUR, USD-GBY, USD-INR, EUR-GBY, USD-YEN
For intraday traders the break of the high of pin bar is ur entry with stop below the low of the bar.
THE REASON:- As per Nial fuller
PIN BARS FORMED AT HIGHER TIMEFRAMES ARE NORMALLY HIGHLY PROBABLE THEN INTRADAY TIME FRAME
so any body using this in intraday should keep in mind the volatility and the strict stoploss in place ...
HOW TO FIND THEM;
well if u dont have a special afl...it is nothing but SHOOTING STARS at resistance and HAMMER at Support somtimes it forms HANGING MAN or DRAGON FLY DOJI or GRAVESTONE DOJI...
but keep in mind they should at appropriate places.. as explained above
AS seen in IMAGE
Case 1:- after the gap formed it did not fill the gap as it was a breakout gap... and so it formed a dragon fly doji at 5566...confirming the uptrend can be intact ( AS I DID IT YESTERDAY)
Case 2 : in this case if formed at Fridays pivot low at 5615 as the market took that a trendline line support from there it went ahead...and the exit was at 5640 considering the resistance due to previous pivot high..in this case it looks like Hammer( AS I DID TODAY)
Case 3: after 11 am today we see another pin bar at the same trendline as in case 2 thus making a trend continuation where the exit was a today's high of 5700....major daily resistance lvl ( MISSED THE COMPLETE RALLY)
case 4:- after touching its reistance again at 5700 it formed a shooting star that can push the prices lower as expected so one can take a short in mininifty fut at that moment thus making a quick 20 points gain ( AS I DID TODAY)
it takes considerable amount of time and patience and discipline and skill to trade in this manner
( IF U CANT SEE ZOOM IN DIFF WINDOW)
Re: Pin Bar System (Nifty sell trade with 24 pts stop loss closed in Profit of 333 pt
http://www.informedtrades.com/4920-inverted-hammer-shooting-star-patterns-how-trade-them.html
http://www.informedtrades.com/4920-inverted-hammer-shooting-star-patterns-how-trade-them.html
Re: Pin Bar System (Nifty sell trade with 24 pts stop loss closed in Profit of 333 pt
So what, you get stopped out on this trade. And move on to next trade.
No setup/pattern is 100% perfect in trading and same is true with Pin bars too.
We need to look at profitability over a number of trades, not on each trade.
Pin bars are one of the most successful setup of price action trading. It needs to be supported with some additional filters like location / specific events /previous trend etc.
Bearish pin bar, should come after an uptrend which was not the case on 28-feb bar. As mentioned by Kevin, this was also budget day. These types of filtering would have saved you. One of the way people trade this setup is to enter after the low/high of pin bar is taken out. So 28-feb case, the short is never triggered as next bar did not go below the low of pin bar.
hope this helps.
Happy Trading
Feb 28 should be Bearish pin bar ?? But the markets went up.
No setup/pattern is 100% perfect in trading and same is true with Pin bars too.
We need to look at profitability over a number of trades, not on each trade.
Pin bars are one of the most successful setup of price action trading. It needs to be supported with some additional filters like location / specific events /previous trend etc.
Bearish pin bar, should come after an uptrend which was not the case on 28-feb bar. As mentioned by Kevin, this was also budget day. These types of filtering would have saved you. One of the way people trade this setup is to enter after the low/high of pin bar is taken out. So 28-feb case, the short is never triggered as next bar did not go below the low of pin bar.
hope this helps.
Happy Trading
Re: Pin Bar System (Nifty sell trade with 24 pts stop loss closed in Profit of 333 pt
Kevin, as far as I know, Mark Mcrae is australian forex trader and internet business person. He is not Mkt Wizard in Schwager's book (correct me if I am wrong). To promote his products, he has intereviewed other market wizards. (sorry I have special respect for mkt wizard and can't stop commenting when I saw a wrong name there).
anyway, thanks for explaining so much about pin-bar system with example. Well done and keep it up.
Happy Trading
Kevin, as far as I know, Mark Mcrae is australian forex trader and internet business person. He is not Mkt Wizard in Schwager's book (correct me if I am wrong). To promote his products, he has intereviewed other market wizards. (sorry I have special respect for mkt wizard and can't stop commenting when I saw a wrong name there).
anyway, thanks for explaining so much about pin-bar system with example. Well done and keep it up.
Happy Trading
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