Pinbar Trading Strategy Indicator MT4

One of the most reliable candle formations you can see on the Forex chart is the pin bar.  A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. Many traders consider this as one of the most powerful candlestick patterns for trading. The pin bar reversal as it is sometimes called, is defined by a long tail, the tail is also referred to as a “shadow” or “wick”.

Pin bars basically show a reversal in the market, so they are a very good tool for predicting the near-term, and sometimes long-term, the direction of price. They often mark major tops or bottoms (turning points) in a market.

Note: The pin bar pattern must be closed out before entering the market based on it. Until the bar is closed as a pin bar pattern, it’s not really a pin bar yet. Pin bars will show up in any market. Be sure you practice identifying and trading them on a demo account before trading them with real money.