ERRORS ON PIN-BARS
There are a large number of technical analysis figures, there are many different patterns, but as you know, they do not work 100% of the time.
No matter what you trade, you should always pay attention to the market context and the pin bar is no exception.
Pin bar is a very profitable pattern, provided that you trade it correctly.
Beginners often make mistakes trying to trade every pin bar that is formed in the market.
Today we will try to analyze the most common mistakes of beginners when trading a pin bar.
1. Trading pin bars in trending markets
To begin with, every beginner should learn how to trade a pin bar in trending markets, because any pattern will work itself out if it trades in the direction of the trend.
The trend is still our friend and we should use its strength to open positions.
Look for an entry point on the pin bar in the direction of the trend and avoid losses.
2. Pin bar on daily charts
A trader should be able to trade a pin bar on daily charts, because a daily chart is the best chart for trading. This is a fact.
If you do not know how to trade a pattern on a daily chart, then you will not be able to trade it on smaller timeframes.
As you know, the market is full of trading noise on low timeframes. That is why patterns are most difficult to work out there.
In such noise, false signals appear that confuse beginners, but an experienced trader will be able to determine a really profitable entry point.
3. Market conditions
It is very important to understand where to expect the right pin bar, which will bring profit.
Pin bars can be found anywhere in the market, but this does not mean that each of them will bring you profit. No.
The strongest signals occur near strong levels, it is at such points that it is worth looking for an entrance.
4. Stop loss
Very often, traders trade a reversal pin bar, hoping to catch a trend change.
If you catch such a movement, you can earn a lot, but it's difficult to do it.
The price rarely immediately reverses after the pin bar, the market will fluctuate and if you put a stop loss too close to the position opening point, you may be knocked out.
It is most correct to put a stop loss where the closing of the position will be correct, perhaps a little further than the opening point.
No one wants to be knocked out of position ahead of time and watch the price go where we wanted, but without us.
Conclusion
The strongest signals simply cannot appear everywhere on the chart.
You need to be able to filter out the signals correctly and use the most profitable ones.
To do this, first study the theory, gain experience on older timeframes and only then practice more.
Take your time.
Good luck!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
No matter what you trade, you should always pay attention to the market context and the pin bar is no exception.
Pin bar is a very profitable pattern, provided that you trade it correctly.
Beginners often make mistakes trying to trade every pin bar that is formed in the market.
Today we will try to analyze the most common mistakes of beginners when trading a pin bar.
1. Trading pin bars in trending markets
To begin with, every beginner should learn how to trade a pin bar in trending markets, because any pattern will work itself out if it trades in the direction of the trend.
The trend is still our friend and we should use its strength to open positions.
Look for an entry point on the pin bar in the direction of the trend and avoid losses.
2. Pin bar on daily charts
A trader should be able to trade a pin bar on daily charts, because a daily chart is the best chart for trading. This is a fact.
If you do not know how to trade a pattern on a daily chart, then you will not be able to trade it on smaller timeframes.
As you know, the market is full of trading noise on low timeframes. That is why patterns are most difficult to work out there.
In such noise, false signals appear that confuse beginners, but an experienced trader will be able to determine a really profitable entry point.
3. Market conditions
It is very important to understand where to expect the right pin bar, which will bring profit.
Pin bars can be found anywhere in the market, but this does not mean that each of them will bring you profit. No.
The strongest signals occur near strong levels, it is at such points that it is worth looking for an entrance.
4. Stop loss
Very often, traders trade a reversal pin bar, hoping to catch a trend change.
If you catch such a movement, you can earn a lot, but it's difficult to do it.
The price rarely immediately reverses after the pin bar, the market will fluctuate and if you put a stop loss too close to the position opening point, you may be knocked out.
It is most correct to put a stop loss where the closing of the position will be correct, perhaps a little further than the opening point.
No one wants to be knocked out of position ahead of time and watch the price go where we wanted, but without us.
Conclusion
The strongest signals simply cannot appear everywhere on the chart.
You need to be able to filter out the signals correctly and use the most profitable ones.
To do this, first study the theory, gain experience on older timeframes and only then practice more.
Take your time.
Good luck!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
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🏆TOP Broker: lingridedu.com/brokerFXPro
🌎WebSite: lingrid.org
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