The Pin Bar reversal is well known among traders, but it's often identified and traded incorrectly.
These are the 4 most common mistakes people make when trading the Pin Bar Reversal:
The Reward/Risk Ratio is simply a way of expressing the potential reward (profit) on a trade, relative to the potential risk (loss).
You might see it expressed in one of two ways..
A 2:1 Reward:Risk would mean that for each dollar you're risking, your potential profit is 2 dollars.
If your stop loss level is 20 pips, then your take profit would be 40 pips.
Have you ever noticed that after a solid winning trade you often lose money on the next one? Well, it may be something you can prevent, at least sometimes. You see, after a winner, there is emotion that can cause traders to want to jump back into the market without a signal being present.
Simplicity is the most often and easily overlooked ingredient to profiting long-term in any financial market. I’m sure you have probably tried using complicated and (or) expensive trading methods at some point and subsequently realized that they weren’t working how you had thought. This article will help you understand why people tend to over-complicate Forex trading and how you can use the power of simplicity to your advantage.
If your Forex trading is not going the way you want it to and you feel overwhelmed by the amount of market data bombarding your brain every time you sit down to analyze the markets, you probably need to readjust your trading strategy so that your primary focus is on the daily charts.
If you are currently experiencing any of the following trading problems you will benefit significantly from making the daily chart your primary trading time frame: