You use Pin Bar candlesticks combined with a Support and Resistance indicator for entering the correct reversal position. The rate is probably about 80%; every 5 times you make a trade, there will be 1 failure.
Support and Resistance indicator
The Support and Resistance indicator is a basic but effective indicator. This article will help you know how to use Pin Bar candlestick signals to open trades based on Support and Resistance to increase entry time accuracy. This is a common signal of reversal points that is easy to see.
If you have not learned about the Support and Resistance indicator, please read the article: https://traderrr.com/support-and-resistance-how-to-find-and-how-to-use-it/
Pin Bar Candlestick
Pin Bar is a short body bottom or top candlestick. It has both long and short tails, especially in the case the shorter the tail, the better.
Pin Bar candles often show a fierce tension between the buyers and the sellers. If the price is on a good momentum and there is a reverse Pin Bar candle, the market is probably on the verge of a reversal.
Combine Pin Bar candles and the Resistance Support indicator
By using the Support and Resistance indicator, you have been able to predict the reversal’s exact timing. However, that applies to a predictable chart case of using the Support Resistance indicator. You won’t be able to guess if the price will breakout for imperfect situations.
Here is the other way for imperfect situations; the signals are usually seen at the end of an uptrend or downtrend. That is the Pin Bar candlestick, a combination of Pin Bar candlestick and Support And Resistance indicator will increase the probability of reversal prediction. This combination’s accuracy rate is up to 80% at each time Pin Bar appears in this position.
Make a trade
There are two situations where you can open a trade:
- Price hit the Resistance Threshold and appear a Bearish Pin Bar candlestick (*).
- Price hit the Support Threshold with a Bullish Pin Bar candlestick (**).
(*) Bearish Pin Bar: A candle with a body at the bottom.
(**) Bullish Pin Bar: Candle with a body at the top.
Entry of Resistance reversal
You will open a bearish order at the end of an uptrend when the price touches the resistance, and a Bullish Pin Bar candlestick appears. As shown below.
Entry of Support reversal
You should open an order at the end of a downtrend when the price hits the Support with a Pin Bar candlestick appeared. These two combined signals increase your accuracy at up to 80%.