Here is an Example of a Pin Bar that is followed by a consecutive Pin Bar that is also an Inside Bar. This type of price behavior just adds to my weight of evidence style of trading. When this type of price action happens it denotes that there is an increased probability that this will be a high probability trade and has a higher probability of being successful. Here is a chart of the price action.
What are the entry triggers for this trade:
- Pin Bar Formation
- Consecutive Pin Bar formation
- Inside Bar formation
- Rejection of the Central Pivot Point (significant support level)
- Major round number level 1.3800(significant support level)
This is what I refer to as my weight of evidence, I need multiple confirming factors that indicate a high probability trade. This trade went on to reach the R1 profit target four hours later. There was also plenty more profit potential if a trailing stop was utilized on a part of the position.
These trading opportunities occur all the time and in all the currency pairs, it is just a mattter of waiting for the best setups.
Perryg
October 31st, 2010 at 5:25 AM
Hey there.
I like it – you have a similar trading style to me, although I’m not ready to trade timeframes like M15 – I’m just trading the daylies, and H4 at the mo.
All in good time
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January 19th, 2011 at 6:10 PM
Excellent trading strategy. I use this one myself as well. In addition to pin bars, I also look for doji’s on support/resistance, although pin bars give stronger signals.
January 21st, 2011 at 5:31 AM
Halo! As I am not aware about the trading world much, I could not comment much. I don’t know what is pin bar and what is inside bar!! Everything was like blah blah blah to me! But one thing I got from your post is that, traders would have lucrative business deals when they go for the combination of pin bar and inside bar! Anyways, thanks for your enlightenment!