Pin Bar inside Bollinger Bands to open short positions
Using the Pin Bar in the Bollinger Bands pattern is an effective way of hitting a 5-minute short order. The Pin Bar candlestick is always a common signal at the end of the reversal point, in technical analysis patterns.
However, they are only valid when appearing at the signal points of the basic models or indicators. You can check out the article Pin Bar combines Support and Resistance: https://traderrr.com/pinbar-candlesticks-with-support-and-resistance-trading-strategy/
If you do not know anything about Bollinger Bands, you can see this article: https://traderrr.com/what-is-bollinger-bands-and-how-to-use-it/
To learn about Pin Bar you can see the following article: https://traderrr.com/pin-bar-candlestick-pattern-regular-pattern-in-trading-candlestick-charts/
Pin Bar and Bollinger Bands are both reversal point indicators, but their combination can only open short orders.
You should trade 5-minute orders with 1-minute candlestick and follow the candlestick color.
Make trades according to the candlestick color
If you open a position according to the candlestick color, you just enter an order based on candlestick color. You won’t need to worry about market trends.
You open an order when the countdown decreases to zero. This is the closing time of the previous candle and the opening of a new candle.
When the price reaches the Bollinger Bands, the market has a slight correction to stabilize the market.
While the Pin Bar candlestick shows the tension between the buyers and the sellers. Whether it is the victory of any side, it has an effect on the next market trend in a short time. In this strategy, we need to pay attention to whether the color of the Pin Bar candlestick is towards the Bollinger Bands or not.
Make a trade with Bollinger Bands and Pin Bar
The explanation above means that there are two cases when the price breaks out of the Bollinger Bands as below:
Price exceeds Upper Band
When the price exceeds the upper Band and creates a bearish Pin Bar candlestick, you must make a bearish trade immediately. Since the Bollinger Bands indicator tells you when the price reverses, combined with the pull-out from the Pin Bar candlestick, it is almost certain that the price will turn downwards in a short time to correct the market.
Price exceeds Lower Band
In the case of exceeding the lower Band, the same situation will happen. You need to open a bullish position when the price drops out the Band and create a bullish Pin Bar candlestick. The market will correct itself, and Pin Bar candlestick is the clearest sign.
You should pay attention to the timing. Pay attention to the opening time of the next candlestick and the color of the Pin Bar candlestick. You need to make a trade with the same color as the Pin Bar candlestick.
There is a very low chance that the market will not function as above.
This method is only for short-term prediction, so you should make a 5-minute Fixed Time Trade with 1-minute candles.
This strategy will not give any signal without Pin Bar candles.