Pin Bars trading strategy

Traders in forex consider pin bars trading to be among the most efficient strategies. This article is going to bring out the most important things about trading pin bars. First of all, we need to not to assume that you would know that there are basically two sorts of pin bars, bullish and bearish bars.
pin bar on chart
It is noticeable that bullish pin bars are only valid when they emerge in a situation where there is a bearish trend, and vice versa; a bearish pin bars are valid when they occur during bullish trends. To be valid in such environment, its tail needs to be double the size of its body and the wick should be less than one third compared to its body.
So let’s get into the ways of trading pin bars. Those should be traded as soon as they get close on a certain time frame. Perfect time frame to trade pin bars are of four hours, on a daily or weekly basis. The best case when trading a pin bar is success is when other strategies can be conjugated with it. Those are for example Fibonacci levels or trending or swing analysis. Anyway, the pin bars are more reliable as they are closer to a support or when they are close to a horizontal level.
When a trader is handling qualified pin bars, stop losses should be positioned on a pin bar’s swing low. That is when a return profit can be about 2:3 or bigger. When a pin bar appears on low time frame, it usually requires smaller limits of stop loss. If it appears on higher time frame, it requires larger limits of stop loss.
All in all, trading a pin bar is better on high time frames, preferably on a daily or weekly basis, along with tight money managing. We also recommend to avoiding trading a pin bar that emerges inside the same or similar trend, because only pin bars that are counter-trend can produce reversal signals.

Pin Bar Strategy :
BUY if price is on daily chart above middle line of B. Band and price on H1 or H4 chart is bullish pin bar.
SELL if price is on daily chart below middle line of B. Band and price on H1 or H4 chart is bearish pin bar.