Pin Bar Method of Forex

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The pin bar - MACD forex strategy can be used as a standalone system for trading1 hour and 4 hour currency charts. It requires the use of only one technical indicator and candlestick pin bars. This strategy is very useful for beginners because it does not include a huge number of rules and trading conditions and therefore very easy to understand.

Trading Setup


Time Frame: 15 min,30 min,1hour,4 hour
Currency Pairs: Any
Trading Indicator: MACD - default settings 12,26,9 (More info)
Pin Bars

Pin Bars Defined

A bearish pin bar represents a candlestick composed of a long upper wick, small body and small lower wick. (sellers control the market)
A bullish pin bar represents a candlestick composed of a long lower wick, small body and small upper wick. (buyers control the market)

More info about pin bars ...


Rules For A Sell Trade

1) 15 min ,30 min ,1 hour ,4 Hour MACD below 0
2) A bearish pin bar appears on the chart.
3) Sell the currency pair at market price on the close of the bearish pin bar.
4) Set safety stop at one pip above the high of the pin bar.
5) Trade objective: 1:2 risk-to-reward ratio or better.
6) Move stop loss to break even at risk-to-reward ratio 1:1

Example: Pin Bar MACD Forex Trading Strategy, EUR/USD 4 Hour Chart


The chart above shows two short trade entries in a bearish market (MACD < 0). The first
trade was successfully closed for 116 pips of profit. The second trade was stopped out at break even.

Rules For A Buy Trade

1) 1 hour ,4 Hour MACD above 0
2) A bullish pin bar appears on the chart.
3) Buy the currency pair at market price on the close of the bullish pin bar.
4) Set safety stop at one pip below the low of the pin bar.
5) Trade objective: 1:2 risk-to-reward ratio or better.
6) Move stop loss to break even at risk-to-reward ratio 1:1

The Flip and Go forex trading strategy follows the overall trend and is easy to apply. All you need on your charts is the MACD indicator with default settings and the 25-period exponential moving average.

Forex Chart Setup

Preferred Time Frame's: 15 min and above
Trading Indicators: MACD (12, 26, 9), 25-period EMA
Recommended Trading Sessions: Euro and US
Currency Pairs: Any

Rules for a Long Trade

1) Look for a currency pair that crosses and closes above the 25-period EMA from below.
2 Wait for the MACD to turn positive (above the zero line).
3) Go long at the candle's close.
4) Place stop loss 3 pips below the most recent support low.
5) Trade objective: risk-to-reward 1:2 or better.