Price Action

I trade almost exclusively PIN bars. PIN bars or Pinocchio bars are signs that a market is going to reverse, on their own they are 50/50 but at important levels they can be very reliable.

On the attached photo you will see 4 possible PIN bars marked.

PIN number 1 is a long PIN but it is not at the bottom of a swing low so it is disregarded.

PIN number 2 is at a swing high however the low of the PIN is the same as the bar before it, I like to see the low of the PIN bar being ion the top half or third of the previous bar. This PIN is also disregarded.

PIN number 3 is at a swing high, the low is in the top third of the previous bar and the PIN itself is nicely formed as the nose (the bit that sticks out at the top) is longer than the rest of the bar. This is also at a resistance level.

PIN number 4 is similar to number 3 except that it is signaling a long trade.

Both PINs 3 and 4 provided excellent signals off the 5 minute chart. These are the setups I look for every day from about 9am UK time until 9pm.