【Today’s Knowledge】Pattern — Trading Strategies for Pin Bar Lines

🔹1. Methods of Using Hammer Candle Patterns in Trading Strategies
The high or low points of the pin bar candlestick are important price levels. When big players manipulate the market and look for stop-loss points, they leave some traces.
These traces mean they leave behind key price levels, which can serve as strong support and resistance levels.

🔹2. Analysis on Higher Time Frames
(1) One way to trade these levels is by using higher time frames. Analyzing higher time frames can improve the win rate of trades.
(2) On higher time frames (such as the 4-hour chart), draw support and resistance reversal levels using the high or low points of long-tailed pin bars.
On lower time frames, look for engulfing patterns or hammer candlestick patterns at key price levels, and trade in the direction of the main trend.

🔹3. Practical Application
(1) We need to find suitable pin bar patterns in historical data and draw a horizontal line at the tip of the tail. This horizontal line will serve as a key price level. These levels can be used for trend trading.
(2) The pin bar pattern reveals the trading footprints of market makers. If used properly, it can easily generate profits from the market.
After backtesting this pattern at least 100 times, you can easily select the best patterns from the charts.
The opening and closing prices of the pattern are crucial. Professional traders can analyze all time frames solely based on the opening and closing prices.