Traders need indications and confirmation about any changes in the market trend. It is essential to identify these changes as they can affect the trading plans of traders to a great extent. It is imperative to keep up with the changing market trends in order to have meaningful trade.
There are many indicators and analysis tools available to Forex traders to stay ahead in the market. One of the most important analysis strategies is the Candlestick Chart Pattern. Candlestick patterns are an indispensable part of it when it comes to the technical analysis of Forex. The majority of traders rely on these patterns while trading Forex. This is mainly because these patterns give strong indications of any changes in the market trend.
What most traders look out for in the Forex market are the indications of trend continuation or trend reversals. The best candlestick patterns to identify such movements are the Pin Bar Pattern and the Doji Pattern.
In this article, we will read what the Pin Bar Candlestick Pattern and Pin Bar Pattern Indicator are, and how to trade Forex on MT4 using the Pin Bar Pattern Indicator.
Download Pin Bar Reversal Indicator
The pin bar reversal indicator is the best pin bar indicator for Mt4 for all traders that like to trade pattern recognition systems. You can download indicator below.
What Is a Pin Bar Candlestick Pattern?
The Pin Bar is a candlestick pattern that can be identified with a small body and a long wick or tail. There are two types of Pin Bar Candlestick Pattern, Bullish and Bearish.
In the Bearish Pin Bar Pattern, the long tail or wick is pointing upwards. The length of the upward-facing long-tail reveals the price rejected by the buyers in the Forex market. On the contrary, the Bullish Pin Bar Pattern has a long tail pointing downwards, representing the price rejected by the sellers. These patterns indicate that there is a possibility of trend reversal and the price may start moving in the direction opposite to that in which the tail is pointing.
The Pin Bar Pattern is an important pattern to verify a market trend reversal. Many traders take help from this pattern on a regular basis to confirm the market movements. However, due to numerous patterns forming in a Forex price chart during the course of time, it can easily be mistaken with other similar-looking patterns. Therefore, traders can use the Pin Bar Pattern Indicator to confirm the occurrence of the Pin Bar Pattern on the MT4 terminal screen.
What Is the Pin Bar Pattern Indicator?
The Pin Bar Pattern Indicator can be easily downloaded and applied to the MT4 Forex terminal. This is an indicator that highlights all the Pin Bar Patterns on the Forex price chart. This indicator is very helpful for novice Forex traders as tracing a candlestick pattern can be difficult when they are still learning. Also, expert traders can also use this indicator with other tools to create a Forex trading plan.
When applied to the MetaTrader platform, the Pin Bar Pattern Indicator automatically highlights all the Pin Bar Patterns on the chart. The bearish pin bar is highlighted with a red arrow on the top of it, while a bullish pin bar is highlighted with a green arrow at the bottom of its tail or wick.
The Pin Bar Pattern Indicator is simple to use, especially with the MetaTrader. It simplifies traders’ work to look for the pin bar patterns on the price chart. The pin bar patterns are important trend reversal indicators. Not only this, the pattern also assists traders to determine where to place the buy and sell orders. So, it becomes important for traders to recognize these patterns at the right time.
The Pin Bar Pattern Indicator is a sort of detector and scanner that scans the Forex price chart and detects all the Pin Bar patterns for traders. It is imperative for all technical trading strategies and can be of great use to both beginners and experts. Its ability to automatically mark all the pin bar patterns and adaptability with the EA proves it to be a trader’s companion.
However, even though the Pin Bar is a strong indicator of a trend reversal, one must also confirm the changes in the trend with the current price action.