Hi,
During the weekend, i read your book about pinbar for more than 3 times. Im still digesting by studying the past chart from my trading platform.
There are 2 questions appeared now in my mind:
1. The validity of signal when appeared at area of pinbar, is 24 hours timer still valid or can use let say 48 or 72 hours area?
2. Is pinbar reversal can say it supply when appeared on top and demand when appear on bottom?
3. About profit target, in your book, you mention in detail regarding entry location, criteria, reason and stop lose. May i know how to determine the profit target? Is it last significant swing low/high? Trailing stop? Risk:reward ratio?
4. This question is abit out from pinbar, how if i see engulf candle in the area of pinbar reversal, what should i do?
So far thats all my questions that appeared after reading you new ebook about pinbar.
As usually thank you in advance for your reply.
Regards,
My Response:
YES, the 24-hour rule is still valid.
Pin bar setups: These aren’t exclusively meant for trading at supply or demand zones. However, it’s a different story when it comes to institutional reversal pins. The majority of substantial reversals will kick off when the market hits a supply/demand zone, or a buy/sell zone.
These reversals will usually show multiple swing highs/lows before the reversal fully takes place.
The institutional reversal pin one you’d ideally be trading often appears as one of these pre-reversal swings.
Your Second Question.
I’m a bit unsure about what you’re asking. If you could provide a bit more context or rephrase it, I’d be more than happy to answer it for you.
Profit Targets: I honestly don’t have any set in stone… Instead, I prefer moving my stop to secure profit as the market swings in the direction of my placed trade. On occasion, I’ll aim for a higher timeframe supply or demand zone, or a buy or sell zone, but only if I believe the market is likely to reverse once it hits the zone.
The decision hinges on the strength of the zone, which, in turn, depends on how many orders were entering the market when the zone formed.
Whether an engulfing candle forms or not doesn’t affect your trade as long as the market hasn’t breached the most recent point where the banks have positioned their trades.
Your Trade stays open regardless of whether an engulfing candle forms after the pin bar. If you’re trading an institutional reversal pin and an engulfing candle pops up, you keep the trade open until the market pierces through the point where your stop is located.
For a bullish reversal, the market would have to cut through the lowest swing low formed during the reversal for your trade to be closed. For a bearish reversal, the engulfing candle would have to push the market through the highest swing high formed during the reversal to close your trade.
I hope this clears things up,
Best Regards,
PAN.