Pin Bar Siege Moving Average

Price Action is one of the trading factors on which many trading strategies and professional analyses are literally based, not only in forex, but of course in other markets as well.

Pin Bars are one of the best trading indicators when it comes to Price Action, and when Pin Bars are properly linked and used with moving averages, traders get something that others can only dream about.

Strategy entry rules

Entering long positions

- Creating a Pin Bar on the moving average (any part of the Pin Bar can lie here, including the body)

- Pin Bar must have a long wick in the bottom (body color does not matter)

- the body of the Pin Bar should not exceed 25% of the total extent of the Pin Bar

Entering short positions

- create a Pin Bar on a moving average (any part of the Pin Bar can be there, including the body)

- Pin Bar must have a long wick on top (body color does not matter)

- the body of the candle should not exceed 25% of the total extent of the candle

On the chart below you can see two trades executed according to today's trading strategy, where in the case of the first one (the first green ellipse) the long conditions were fulfilled (you always have to wait for the Pin Bar to close in order to take it as valid). Immediately after the closing of the Pin Bar candle and the opening of the candle following it, a long entry occurred and eventually after that the market did indeed head northwards exactly as suggested.

The Stop-Loss (SL) is then placed below the low (long trades) or above the high (short trades) of the Pin Bar as part of the strategy.

Take-Profit (TP), its placement is individual, it is advisable to place it for example at some closer/farther S/R level (see S/R on the chart below)

Pin Bar Siege Moving Average is one of the most effective trading strategies where traders can achieve long-term success rates that can exceed 75% on some instruments.