Simple price action trading strategy-pin bar candlestick

In last couple days I searched for any new profitable Forex method without any indicator. I started with Fibonacci breakout and it works pretty well. Now, I am trying to combine the Fibonacci breakout and some other price action strategy. Price action is a good way to trade Forex currencies because if we rely on indicators, we will missed the momentum.

On this post, I am going to show some nice setup using pin bar candlestick or hammer type candlestick. I do not trade based on this pin bar only but, if we spot a pin bar candle, we can prepare ourselves to enter the trade as well.

 

Successive pin bar candlestick

pinbar-1

As you see above picture, the price has made a nice down trend before the pin bar candlestick appear. After the pin bar candle, the price move up pretty nice. We can get some nice pips here.

Another additional conditions that support the pin bar candlestick are the following:

  • The candle is on the upper or lower Bollinger Bands
  • The tail is break outside the bands

Those confirmation can be used to filter the false signal of the pin bar candle stick.

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