That pin bar is one of the signs I follow Bob. I've been short in the pair. Many times, you will see price penetrate a level or pivot with a pin. This is the market maker tripping stops and enticing traders to take positions there. Many times they are false positions. The pin you refer to is where LONGS were trapped into there positions Friday, while SHORTS could have had their stops triggered, taking them out of a trade before it drops.nanningbob wrote:10.4 TRADERS ignore this post but for Trader Jack I think this would be a quality Pin bar trade, if I understand your system properly. Then again maybe I dont.
It's one of many repeat tricks they use every day. Price will range during Asian, then exit the range. Once price climbs or falls 25-50 pips beyond the range, as established in Asian session, a stop hunt will take place. The true direction of price will emerge after the stop hunt...Many times, price will rise for 2 days as it has here, then reverse on the third day...possibly during NY if not sooner.
You can watch this action on a 15m chart. I expect price to approach the pin high or exceed it a bit, due to spread widening, before the fall. I will set my stop 10-15 pips above the finale high pin after it has formed. Until then, it is a mental stop 25-50 pips above current high of the white pin.
I could have closed several trades Friday but chose to hold along with several others. I'm sure that the pins are above a pivot for all pairs. If you can't tell by now, I like to "pin" my orders. R:R value gets crazy high there.
CJ