In-depth Of Pin Bar Indicator MT4
In technical analysis of the markets, use of the indicators is a real source of taking essential decisions that ensure profits. Therefore, the Indicators can be described as the eyes for what the trader sees and takes specific crucial steps with regards to the market activities. Pin Bar Indicator MT4 is the focus of this post.
Its critical significance in the Forex market will be highlighted. While its pattern is one of the most frequently used candlestick pattern indicators. Therefore, this indicator is valuable as it can signal a possible reversal in the direction of price activity.
Pin Bar Indicator MT4
Pin bar Indicator is an MT4 indicator that tries to identify Pin bars (known as “Pin bar” or “Pin-bar”) and tags them by positioning a “smiling face” sign above the bearish Pin bars and below the bullish Pin bars.
While this indicator is a sole price action indicator, which does not use any regular technical best metatrader indicators in its coding. So, the formation of Pin bar detection can be achieved through the indicator’s input parameters. And the Pin bar Detector can send out platform alerts as well as e-mail alerts on detection.
Pin Bar Indicator MT4 Input parameters
1. Count Bars (default = 0)
The highest number of bars, on which to detect Pin bars. 0 = all.
2. Display Distance (default = 5)
The space from the candlesticks to the Pin bar “smiling face” signs.
3. Use Alerts (default = true)
Signals the indicator to send out platform alert with sound notification on Pin bar detection.
4. Use E-mail Alerts (default = false)
Tells the indicator to send out an e-mail alert on Pin bar detection. The E-mail should be configured correctly in MT4 via Tools->Options-> E-mail.
5. Use Custom Settings (default = false)
Signals the indicator to make use of custom Pin bar detection parameters as explained below.
6. Custom Max Nose Body Size (default = 0.33)
Highest allowed body/length fraction for the Nose bar.
7. Custom Nose Body Position (default = 0.4)
Nose body should be located in the top (bottom for bearish form) part of the Nose bar.
8. Custom Left Eye Opposite Direction (default = accurate)
It tells the indicator that the Left Eye bar ought to be bullish for bearish Pin bar and bearish for bullish Pin bar.
9. Custom Nose Same Direction (default = accurate)
It tells the indicator that the Nose bar ought to be of similar direction with the pattern itself.
10. Custom Nose Body Inside Left Eye Body (default = false)
It tells the indicator that the Nose body ought to be inside the Left Eye body.
11. Custom Left Eye Min Body Size (default = 0.1)
The smallest size of the Left Eye body compared to the bar length.
12. Custom Nose Protruding (default = 0.5)
The smallest protrusion of the Nose bar compared to the bar length.
13. Custom Nose Body To Left Eye Body (default = 1)
The biggest size of the Nose body compared to the Left eye body.
14. Custom Nose Length To Left Eye Length (default = 0)
The Smallest Nose length compared to the Left Eye length.
15. Custom Left Eye Depth (default = 0.2)
The lowest depth of the Left Eye compared to its length. The depth is stretch of the area of the bar behind the Nose.
Figure 1: Forex chart displaying Pin Bar Indicator MT4
As shown in the chart above, it can be deduced that the indicator is not flawless, just like the Pin bar pattern itself. Usually, it is suggested to try diverse detection settings to sieve patterns according to your understanding of a perfect Pin bar.
A great idea should be to attach this indicator to long-term timeframes (H1-1 hour to W1-1 week) for all currency pairs you are familiar and comfortable trading. After that, alerts would let you know when the trading opportunity comes up. The pin bar indicator is one off the best non repainting forex indicator for day trading.
Trading with the finest pin bar pattern indicator
Why it is one of the trader’s preferred candlestick pattern indicator is the fact that it is easy to recognize it visually. Among various types of candlestick patterns, recognizing the pin bar pattern is very stress-free.
A lot of traders make the tragic mistake of making use of the pin bar candlestick pattern independently. Different from single candlestick patterns like the doji, pin bar candlestick pattern exists as three-session candlestick pattern. The implication is that traders should pay close attention to the earlier session’s candlestick. Since with the present session where the pin bar will probably form and the next candlestick pattern.
However, a pin bar candlestick pattern can only be created successfully when a trader understands how the previous, as well as the next candlestick patterns, close. Hence, this style of trading might be a bit discouraging for the first time of use. It sure takes a bit of effort.
To make things easy, the best pin bar pattern indicator that anyone can apply to MT4 trading platform is herein discussed. Therefore, with this Pin bar Indicator MT4, a trader can easily detect the pin bar patterns and then go ahead to trade based on the alert notifications. If you want to get extra confirmations for your entry then you can use a premium forex buy sell indicator also.
Types of pin bars
There are two kinds of pin bar patterns that are created. The pin bar pattern is crucial in its formation. Usually, once the pin bar is formed, expect the price to reverse as well as produce substantial gains instantly.
Bullish Pin bar
It forms near the close of a correction in the uptrend or near the close of a downtrend. A pattern is formed near the bottom, and the pin bar seems to trip the stops near the end before price reverses direction.
While a bullish pin bar is known by long lower wick the body (open and close) being bullish. However, if the bullish pin bar is shaped at the lows in the trend, expect to see a reversal in price activity.
See the following chart as an example of a bullish Pin bar.
Bearish Pin Bar
It is formed at the uppermost end of a rally, or after the close of a correction to a downtrend. A bearish Pin bar is known by elongated upper wicks and a bearish end. And so then, this pattern implies that market price rises to a new high and is rejected, which leads to a bearish close at the end.
However, identifying a bearish pin bar close to a key price level like a resistance level could mean that price activity could be reversing course.
This chart below shows a Bearish Pin bar:
1. The reversal doesn’t happen on every pin bar formed. Within a trending market, the price often keeps going in the same direction irrespective of any pin bar.
2. Any Pin bar which occurs near the important support/resistance levels is usually the strongest.
3. Never treat every pin bar formed equally. Since the weakest Pin bar is the one with the small candle body.
Conclusion Of Pin Bar Indicator MT4
As detailed in this post, the pin bar pattern is an exceptional candlestick pattern that forms in the markets close to key price levels. While the pattern forms regularly, it gains more significance when it is formed near a vital price level, such as a support or a resistance level.
As you apply this indicator, you let it do the work for you while you wait to be alerted/notified for the signals to crop up. Note that you should not make use of the Pin bar Indicator MT4 independently. Therefore, kindly consult other top 10 mt4 indicators and strategies before taking your position in the market.
You can also use various other indicators and tools available on this platform. Hence, check it through this link and enhance your ability to trade. Next week we are going to publish an interesting proven best forex indicators article! Stay tuned for that.
Finally, share your experience using this indicator in the comment box below: