The Pinbar that Failed – GBPUSD Forex trading
Pinbars are usually great indicators showing strong buyers or sellers in the market. Typically, you would follow the strong participants in the markets as there is a greater chance of the price going your way if you follow them.
However, this wasn’t the case for the GBPUSD forex pair on Friday. I actually placed a long on the Thursday seeing the pinbar. Now, it was a countertrend trade which is more risky and the day before, we did get a very strong sell bar. However, the pinbar as you can see was very prominent and there was clearly some strong buyers in the market.
My entry with a stop below the low of the pin was hoping to rake in a couple hundred points. However, the following day did open with a 20 point move upwards before the sellers took over and pushed the price down to hit our stop for a 100 pip loss.
These days, I’ve found myself become less ‘attached’ to the money in my account. I’ll trade the markets as I see my entries.. put in my stops and limits and leave it. It is a low maintenance way of trading and I hope profitable in the long run!
Have a good weekend!
