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THE CANDLESTICK TRADING BIBLE
risk
in the same trade, the market will not go in your predicted
direction.
If the signal fails, it doesn’t mean that your analysis is wrong, or pin
bars don’t work, it is just because the market didn’t validate your
decision, therefore,
you accept your loss, and you look for another
opportunity.
You May ask yourself, why should we look for quality pin bar setups
if the market doesn’t respect them???
As you know, trading is a game of probabilities, there is no certainty,
this is why you should evaluate your pin
bar setups from multiple
angles, and the fact that you are looking for quality setups means that
you are trying to put the probabilities of success in your favor which is
the right mindset of successful traders.
To determine whether or
not a pin bar is worth trading, this price
action signal should respect the following criteria:
-The pin bar formed in bigger time frames such as the 4 hour or daily
time frame should be taken into consideration, because if you look at
smaller time frames, you can easily spot lot of pin bar signals, these
setups should be ignored, because smaller time frames generate lot of
false signals. See the illustration below:
