Price Action Part 3: Pin Bar in Multiple Timeframe Chart Analysis. Forex trading strategy

Price Action Part 3: Pin Bar in Multiple Timeframe Chart Analysis. Forex trading strategy


Hello, it’s Kei and I am an individual forex
trader based in Tokyo Japan. And welcome back to my another video. In this part 3 of price action trade strategy,
I will be talking and explaining about how to trade with accuracy in Pin bars. You know on my previous video, pin bar is
where you can expect the trend reverse, like for example, when you see pin bar while the
market it on up trend, that indicates the market reverse to the downside and you can
trade contrarian. However, there are pin bars that are profitable
and those that are not profitable. So in this video, I will dig into the different
type of pin bars in multiple timeframe charts so that you know which pin bar to trade exactly
when you see that price action next time. So if you like this video already, please
press a good button and make sure to subscribe and hit a bell so that you get notification
for my future videos on this price action series. Now, let’s get started. So, if you watched the previous video on part 2, if you can recall, pin bar can be a signal for a trend reverse. Now, take a look at this chart. This is the GBPJPY in Daily timeframe, and
if you look at these places, you see two pin bars pointing downwards. But there is one thing I didn’t talk about
on the previous video. And the hint is, this screenshot is taken
after it took some time. I mean, you see these pin bars now, and you
also see that after these pin bars, the market reversed to the upside, but once again, this
screen shot is take after the market is gone to the upside, I mean, it’s like just being
wise after the event, right? But the point is, whether you can be confident
enough to place buy here while looking at a chart real time is the most important thing
because we are all here not to look at the past charts, but we are all here to make money
from the market. Now, there’s a technique to identify which
pin bar to trade or not, and that’s something I will be talking about today on this video. So, to get to the point, how you know whether
to trade or not on these pin bars is by looking at some lower time frames. In fact, look at on this 2nd pin bar on the
right, and if you take a magnifying glass and take a look at it closer on H1 chart,
it’s gonna look like this. So what do you see now? Between these vertical lines, it shows a day,
so the pin bar you looked at earlier in Daily was actually this part right here with the
magnifying glass. Now, give yourself a couple of seconds and
take a look at this chart pattern. And when you do, try to remember what you
learned on my 2nd lecture on this price action video series, and look for Inside bar, alright?
on this day, there’s a clear inside bar. Yeah, it’s right here, you see? For those who haven’t watched the video
yet, I will put the link on the right upper corner and also on the description below so
make sure you watch that video and come back to this. But Inside bar is when a candle is engulfing
future candles, like this. You see, the top and bottom of this big candle
is actually engulfing a couple of future candle sticks. And when you see this on the market, what
you can do is you can simply follow the trend after breaking the high upwards, like this. So let’s say you look at a Daily chart and
when I cover a part of a chart like this, you wouldn’t know if it’s gonna be a pin
bar or not in Daily, right? because at this momentum, the market looks to be bearish,
but as you saw earlier in Daily timeframe, there was a previous low around this price
level, so you can expect that the price might be supported on this area but to be honest,
you are not quite sure yet. And as you keep looking at a market, the price
spiked up once and came back down, and has been consolidating for a couple of hours. And when you noticed that this is gonna be
an Inside bar on this H1 timeframe chart, then you just look forward to placing buy
after the market breaks it upwards, and you actually place buy here, and get all these
pips. You see? Or before placing buy here based on the H1
chart, if you just take a couple of seconds to look at a Daily chart at that time, you
notice that this day right here was a pin bar, right? So it should make you even more confident
to place buy after the Inside breakout in H1 timeframe so that you get higher probability
of winning on this market. So this is one of the examples how you actually
trade with pin bars. So, you know, you see pin bars everywhere
when you look at a chart in any pairs in any timeframes, but you cannot just look at them
and trade contrarian because the market is not that simple. For me, I wouldn’t place buy or sell just
by looking at those pin bars because I need another information to back it up to see whether
my trade plan is right or not. So I said pin bar is the sign of a trend reverse,
but if you trade just by that concept, you are gonna lose all your money because this
alone does not give you enough information, you know, this is just one of the information
and you need to look for another evidence to back it up why you think the price is reversing
at this point. And you can even take another magnifying glass
to take further closer look at these candles here in 5 minute timeframe. Alright, this is the M5 chart and if you look
at this long wick pointing up, this is the candle where you saw it’s going to be an
inside bar. But what I want you to focus here is, if you
look at this candle, it’s another inside right? The candle is engulfing future candles. So let’s say you are looking at this M5
chart like this, and let’s say you see this engulfing. In this case, which direction you think the
trend is going after the break? Upside? or Downside? Look at the trend. Is it bullish? or bearish? it’s bearish,
right? So if I look at a chart real time, one thing
I will do is I will draw a resistance and support line, and follow the break. And as time goes by, the market slightly moved
to the downside, slightly broke the sport downwards. However, the market moved up a little bit,
creating another Inside range here, you see there’s another small Inside bar here. So when you see this second Inside, again
you can expect the market is going to break on either direction. So I will draw another resistance and support
line like this, and just follow the breakout on this M5 chart. So if I have sell here, one of the scenarios
would be, I will be holding the sell position to expect the price to break this support
downwards and expect to renew the lowest level. Or, if the market breaks the resistance line
upwards, I will just close the position on with breakeven or just few pips of loss. I will think of those two scenarios. And also, if you have noticed, you can draw
a line here, you see, the price has been resisted here twice and also been supported here by
a wick earlier. So that also indicates when the market break
this line upwards, it’s gonna move big, right? So when i lose the sell, the next scenario
is going to be when the price breaks this line upwards, I will place buy here. And as you look at the market, the market
finally broke the line. And if you remember the H1 chart, later the
market also created another Inside bar here, and also, even later in Daily, it showed a
pin bar as a result and the market kept on going up. So this is one of the typical examples for
my trading strategies, like when I look for a trade chance, like I keep saying, I always
look for place where I can expect low risk and high return, and by looking at a chart
with price actions in multiple timeframes, you can identify these spots and be able to
make profit constantly. In fact, let me share with you my real trade
example. This is a Daily chart on Gold, and I placed
buy right here at the tip of the wick down here. And if you just look at this Daily chart,
you might think there’s a clear support here, so that’s why I placed a buy. And yes, that’s one of the reasons I placed
buy here, but like I explained, I also look at lower timeframe chart to make me even more
confident on buying here and let me show you what was coming to my mind. Look at this chart, this is the M5 chart and
this place right here is exactly where I placed buy. And if you take even closer look at M1 chart,
the market has been coming all the way down, you know, couple of times resisted by the
Kijun sen, but look at this place, there is a W bottom right here, so this is my 2nd confirmation
why I placed buy, you know, the first one was the Daily support around this area, and
this W bottom is my 2nd confirmation. And after I confirm this little push back
and these consecutive thrust up, I placed buy here, and had running profit of like $1,000
when I took this screen shot after few hours later. And in this case, my initial stop loss was
right here, just below the W bottom with just about like 7 pips or so, very small risk,
but I can still expect a big reward on this Daily timeframe up to the top of the channel
and also with the exact number of 1500 which is going to be about 360 pips from where I
placed buy. So you know the risk to reward on this particular
is going to be 1 to like 51 or 52. You know I placed the stop loss down here
by looking based on M1 chart, but I expect the reward in Daily timeframe. Also, I was thinking to cut loss as soon as
the price break the support downwards. So you see how I combine these price actions
with multiple timeframes and trade with great risk to reward ratio? So like these examples I showed you today
in GBPJPY and Gold, make sure you watch this video and understand what I say over and over
again, and try to increase your trade accuracy by the price action trading techniques. The step is going to be first, just focus
on 1 single timeframe and look back the past charts and try to be able to identify where
those pin bars are. Look back in the past and make sure you can
identify them instantly and get your eyes used to see the market like that. And once you get used to it, then take a look
closer at the pin bars with lower timeframes, and see if you can find another price actions
there. And get yourself ready when it happens next
time in the future market so that you can place the best position you can imagine with
low risk and high return, because this is part of a way to grow your money and be independent
as a pro trader. Alright, so on the next video, I will continue
to be talking about some trade techniques in Doji candle sticks. Actually I was gonna talk about Harami candle
patterns on the next vide but I thought it’s better to cover Doji first, so I just switched
the next subject. So after Doji, I will be talking about Harami. So again, next video is going to be on Doji
trading strategies and how you can actually trade when you see that as I got many many
questions about that candle pattern also. So if you don’t want to miss the next one,
make sure to subscribe and hit a bell, so that you are not gonna miss the next one. And also, if you liked today’s video, kindly
press a good button so that it drives me to make another good trading videos. Alright, thank you so much for watching till
then end, and see you on next one.Stay Gold, Matane!

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