This trading system is based on "pin" bar. What is pin bar? pin is for the Pinocchio. A fairy tale character who has long nose every time he told a lie.
Long nose, or long tail gives us a clue that the price is lying. When we are trade using pin bar, here are you must consider.
- must have long tail
- the previous bar must not exceed the tail
- has small body
- use 15 minutes time frame chart
- plot RSI 6 to determine market price divergence
- 50 SMA Simple Moving Average
- The best currency pairs to trading this system are GBPUSD, EURUSD, USDJPY
- Open trade in the direction of the market trend, near with moving average indicator
- stop loss if the candlestick bar cross the moving average line