A pin bar reversal signal can be a very easy candlestick pattern to spot on your charts.
The pin bar can also lead to quick market reversals that you can take advantage of.
In this post we go through exactly how to use the pin bar and how you can use it in your MT4 and MT5 charts with free indicators.
What is a Pinbar?
Pinbar, which is short for “Pinocchio Bar”, is a price action pattern that clues traders into potential reversals in the market. The pin bar has a small body and a very large “tail” or “wick” rejecting price.
Read about the pin bar and other candlestick formations in our Candlestick Patterns guide.
Here is an example of a bullish and bearish Pinbar.
How to Trade a Pin Bar
Some of the best pin bar patterns occur at swing highs and swing lows within clearly trending markets.
Because the pin bar is a reversal signal we want to be looking for it when price is at a swing high or swing low.
For example, bearish pin bars at swing highs and bullish pin bars at swing lower.
In this example below price is in a trend higher. Price then pulls back lower into a swing low and forms two bullish pin bars in a row. These were a hint that price was looking to make a move higher and we could have taken potential long trades.
Pinbar Indicator for MetaTrader
Pinbar Indicator for MT4
This pin bar indicator is free to download and use. This indicator depicts significant reversal points near support and resistance levels and is a perfect indicator to use with swing trading strategies.
You can define the minimum pin bar size in pips. Additionally, a dashboard is included to show some necessary values.
Below is an image from abcforextrading.com showing the indicator in action;
This pin bar strategy identifies and marks pin bar patterns on the chart, provides MT4 alarms with each new signal, draws SL, entry, profit target levels, and shows all necessary values on a dashboard.
There are also indicator input parameters.
You can download the indicator for free at ABC Forex Trading.
Pinbar Indicator For MT5
This indicator also includes entry and exit conditions, as well as indicator input parameters.
This MT5 pin bar indicator is free to download at MQL5 Indicators
Note: Don’t know how to install and use these indicators? Read How to Download, Install and Use MT4 and MT5 Indicators.
These pin bar indicators can lead to far quicker trade detection times and will help you make sure you don’t miss any big winning trades.
Always remember that practice makes perfect. Make sure to test all new strategies and indicators on a free practice demo account before going live and work out if you can make them profitable within your trading.