thanks for the question brewski, if the next candle does not break either side of the pin then the pin is still valid, the pin is not valid once the top or bottom is broken on the wrong side of the pin
ie if going long and the bottom of the pin is broken then the pin is invalid
for me i if we do not get a break of the pin after 2 bars i would move on and look for a better setup
ideally we are looking for a nice burst out after the formation of the pin, so ideally the next bar should trigger, if the second bar after the pin does not trigger forget about the setup
Someone just pm me a few questions so i thought i would post them and the answers here as they may help people with the system:
- Do you move your stop to BE at a certain point e.g. a specific pip target, once a certain RR is achieved or when the first opposing SR level is reached etc?
- You say has to be 1:1. Are the targets based on pivots and SR? Or just one or the other
- Does it matter if a setup occurs the second/third/fourth time back to the pivot on the same side? e.g. if price touches a pivot on the same side 3 times without providing a PB, but on the fourth you get one, still valid?
- If you take a PB off a level which gets stopped out, but price duplicates the same setup at the same level on the same side a few hours later, is it still valid?
- Must the close of the PB on the right side of the pivot? e.g. will you take a perfectly formed PB where it's close is a couple pips offside
- Is there a minimum pip requirement for the target?
1/ i try never to move my stop, i might take profit at 1 to 1 risk/reward so then the other half is a free trade
2/ targets are always based on the next pivot level so if you take a long trade of DP then r/r is measured by distance to next Pivot Point, now if the pin is much bigger than this distance the trade is invalid and we look for another setup
3/does nt matter how much it touched the PP if a pin bar is formed it is a valid entry
4/if you are stop out and it forms another pin bar then yes the trade is valid(your head might not be
5/ideally both sides of the pin are either on the PP or avove it if going long, below it if going short
6/ yes u can take a perfect pin bar that is just a few pips off on the open
7/no minimum but you want a nice trade i would say over 10 on index at least and i think u will always get more on currencies