The Darksiding of Forex

[wasp]

So basically a Pin (pinocchio) bar, is a spiky bar/candle with a long nose (high/low that withdraws to form a long nose/wick) - telling us a lie about where price is going. We then look to trade in the opposite direction of this pinocchio style nose.

In a nutshell. Yes.

Simple really

Its trying to understand the price before and during to see whether it will be a pin bar or continue....

 

[JTrader]

http://www.forexfactory.com/showthread.php?t=19667

Hi

sorry again, I will not continue dragging in external links after this one. However, i could not resist due to this threads title - they sound pretty happy with it - but i do not know if they have good reason to be!

 

[wasp]

A quick flick through and it looks like another indicator, correct me if I'm wrong?

 

[JTrader]

A quick flick through and it looks like another indicator, correct me if I'm wrong?

I want a thread away from anything that resembles a strategy. (not for calls and the like but the discussion of a deeper understanding) That includes the likes of big Ben, breakouts, anything indicator related, Ross hooks and anything that has a set of rules. Anarchy people, anarchy in the forex world! All the above happen for a more simpler reason and the best way to make consistent returns in this game is delving in there and understanding it.

Sorry Wasp - this is what you didn't want. I misunderstood the indicator bit and thought this is among what you wanted.
I understand now.

 

[wasp]

thats cool JTrader...

Looking at cable on the hourly now, it looks like some weakness in selling so buyer should/are taking over... is there anything else in the action to say where it will go..........?

 

[rols]

Thanks rols.

So basically a Pin (pinocchio) bar, is a spiky bar/candle with a long nose (high/low that withdraws to form a long nose/wick) - telling us a lie about where price is going. We then look to trade in the opposite direction of this pinocchio style nose.
When an above nose has formed, the high of the bars on either side of the pin bar form the eyes for the pin bar. The open and close of the pin bar must be within/lower than the left eye.

Unfortunately, sometimes Pinocchio lies to himself.

I never really trust him.

So I need to investigate further....looking mainly at daily and 1 hour charts.

Where has the price come from?

Where is it going?

What is the current price's relation to PDH or PDL?

Did the end of the pin test a previous support/resistance/fib level/new moon whatever one uses?

Where did the body of the candle actually open and close? And how does this compare to the previous candle(s)?

If then I am satisfied that he is lying then my next question is whether the the current entry point is worthwhile in terms of Risk to Reward. This is why I need to be confident to where the price is going.

These indicators for MT4 may help. With thanks to AHA.

 

[rols]

hi wasp,

conflicting signals. just took a trade on that one, managed to break even. will post a chart on the trade later on. will show if my price reading is bad or if it is worse. lol.

j

Interestingly enough this is a good example. The pin bar did not break the [email protected]. Also look back to 21 feb.

Short entry @ 1.9558 Stop 1.9575

If the price can now close below 9541 (previous close to Pin bar) then I feel this trade has a chance of success.

1st target 1.9525 second 1.9500 third 1.9490

Just my 2c.

 

[Quercus]

Hi Wasp
Looks like some buying "pressure" at or around previous spt, and also forming a HL, so I'm long with a fairly obvious stop area giving around 2.5:1 R:R with an exit just below the round number.
Late enough for me with a new two week old son so night night everyone.

Q

 

[rols]

Interestingly enough this is a good example. The pin bar did not break the [email protected]. Also look back to 21 feb.

Short entry @ 1.9558 Stop 1.9575

If the price can now close below 9541 (previous close to Pin bar) then I feel this trade has a chance of success.

1st target 1.9525 second 1.9500 third 1.9490

Just my 2c.

First target taken STOP now to B/E

 

[wasp]

Interestingly enough this is a good example. The pin bar did not break the [email protected]. Also look back to 21 feb.

Short entry @ 1.9558 Stop 1.9575

If the price can now close below 9541 (previous close to Pin bar) then I feel this trade has a chance of success.

1st target 1.9525 second 1.9500 third 1.9490

Just my 2c.

I'll kick myself as this becomes obvious but... PDL?

 

[rols]

I'll kick myself as this becomes obvious but... PDL?

Previous Day's Low.

Also the PDL(1) can be useful too.

In this current trade the break at close of PDL(1) at 10am would give me further confidence that target 2 will be reached.

If not I may just grab whats left on the table and wait for the next bus to come along.

 

[rols]

Previous Day's Low.

Also the PDL(1) can be useful too.

In this current trade the break at close of PDL(1) at 10am would give me further confidence that target 2 will be reached.

If not I may just grab whats left on the table and wait for the next bus to come along.

Ah. The new candle = PDL(1) so I will lock in profits by moving STOP to 1.9141. Good chance of a retrace here so I've covered myself.

 

[wasp]

1.9141 !!! What market you trading rols?!?!

 

[rols]

1.9141 !!! What market you trading rols?!?!

Sorry typo
should read 1.9541

This is open and close of the two previous candles to the Pin bar in question.

 

[wasp]

Nicely done rols...

So was that just from pins and PDL or more?

 

[rols]

Nicely done rols...

So was that just from pins and PDL or more?

There's a tiny bit more to it. Somewhat similar to your methods perhaps.
I also have my own S/R lines/targets/stops generated by a little app. This trade for example was a three position trade but sometimes they are 4 or 5 if the targets are there. IMO it's pointless setting a 20 pip stop and 40 pip target on every trade - it's meaningless.
These levels are meaningful to me but it doesn't really matter how you set your levels as long as you believe in them.

I know somebody who successfully trades off geomagnetic levels for example. I'm serious!

 

[rols]

If this candle closes below PDL(1) then I shall move stop down to 1.9530 which = 50% point between current stop level and PDL(1).

 

[wasp]

are you working from 1 hour candles predominately?

 

[rols]

If this candle closes below PDL(1) then I shall move stop down to 1.9530 which = 50% point between current stop level and PDL(1).

Done STOP (remaining 2 positions) @ 1.9530

 

[rols]

are you working from 1 hour candles predominately?

That's a good question.

When the price level is approaching a major S/R i narrow down to 1 hour or 30 min as these price levels act like magnets.

When we are in the mid ranges then four hour charts are better for me.

Of course I always look at the weekly and daily first.

And no indicators.

Hope that answers your question!