Keeping inline with yesterdays post on GBPUSD Daily Chart Pin Bar a Good Price Action Lesson | 15th July 2015 and looking closely at the pin bar trigger signals you should be staying away from, rather than just always looking at the trade setups you need to be taking, today we are going to look at a pin bar on the Palladium or XPDUSD Daily Chart and why it was a super risky trigger signal to enter.
As we cover regularly in this blog; trading with the obvious trend is one of the best things we can do to start stacking the odds in our favor to create high probability trade setups. On the other hand, when we are trading against really strong trends this can make it super risky, unless there is other very compelling price action reasons to take the setup.
As I have shown on the daily chart of Palladium below; the Pin Bar Reversal is formed at the low against the strong trend lower, not at any major support level and does not have any other compelling price action reasons for making this trigger signal against such a strong trend lower. The other major thing to take note of is that if we were to enter this pin bar at the break of the high, there is then a very close resistance level sitting straight overhead.
Because price is in such a strong trend lower, the first resistance overhead becomes a very good chance of holding. Looking at the overall price action story how I have just explained it and how you also need to approach all of your price action trigger signals, this pin bar becomes a very high risk trade setup and something that we want to stay well away from.
Palladium Daily Chart
hi MR JOHNATON.how about to use and install EA inicator at platform mt 4?itry install at my platform but not see
Hi Sentosazr,
which indicator are you trying to install exactly?
Are you placing it in the exact location that it needs to go because that is often what is happening if it is not showing up.
Johnathon