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LESSON: Pin Bar against the Trend

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]As you start to take more trades, learn more about reversals and just be in the markets and around the students community forum talking and posting with other traders, you will start to pick up on other things about the markets without even noticing it.

This is done through your subconscious brain and is super powerful for helping all part of your trading as you become more experienced.

As we discussed a little way back in the course; I recommend you stick at first to trend and range trading until you gain enough experience to be able to trade counter-trend successfully. However; I would start looking for them and watching out for them straight away.

To hunt successful counter-trend trades you need to be a bit of a ‘Johny on the spot’, trying to pick the market to reverse and this is why I recommend new traders avoid them. New or inexperienced traders have far higher odds of making money picking trades in the direction of the obvious move – that goes for all of us, rather than trying to pick against it.

If we are going to make a trade against a trend we need to have overwhelming reasons for doing so.

This is where everything you have been taught in previous lessons starts to come into play…

If we only had a pin bar by itself at a support / resistance level against a huge wave of momentum, then this is not going to be a huge reason to counter trend trade.

We need more…

If price had been forming a base or top formation, then formed a huge false break, then that would be a LOT more convincing.

If we had a huge amount of space and potential profit (taught bit later in course) to make, then that price action story could be something to look at.

NOTE: Pin Bars are reversals and often you will see the market turn after a big pin bar has formed.

Chart Example:

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