This is a simple (but still effective) forex strategy utilizing well known candle pattern – pinbar. Pinbar formation is popular even among professional trader and You can use it too to your advantage. This forex strategy uses trailing stop to get the most out of each trade.
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Forex strategy is provided with free expert advisor. You can use it to test the pinbar formation in many different scenarios, timeframes and currency pairs. Brought to you by theforekings.com
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Used tools and indicators
Relative strength index (RSI 100). Apply central zone (CR) in the middle by adding 50 line in the indicators window. This zone will help us to properly identify trend and separate it from ranging market. Higher period RSI is used for calculation.
Pinbar formation: In the expert you can adjust the filter for candle range (maximum candle size of 5 pips) and compare it to the pinbar body size. You can adjust the signal in order to find a perfect pinbar for your entry. Pinbar is a primary signal, strategy enter the trade based on candle following after it.
Trailing stop: Trailing stop is adjusted after each candle close. Additional distance (20 pips)can be applied to the TS.
Forex strategy rules
Sell
RSI moving below 50 line – downward momentum is present in the market.
Pinbar candle followed by bearish candle closing below its low.
Trailing stop placed above the high of the signal candle + additional distance of 20 pips.
Trailing stop is adjusted, mowed on lower price after each consecutive candle close with additional distance still applicable.
We exit the position on trailing stop.
BUY
RSI moving above 50 line – upward momentum is present in the market.
Pinbar candle followed by bullish candle closing above pinbar high.
Trailing stop placed below the low of the signal candle - additional distance of 20pips.
Trailing stop is adjusted, moved on higher price after each consecutive candle close with additional distance still applicable.
We exit the position on trailing stop.
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To win you must trade with broker on your side.
Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.
