How to trade the Pin Bar Trade Set up

Technical analysis includes a broad array of technical indicators and ways to analyze price history, but one of the best kept secrets of technical analysis is a rather simple, but extremely powerful price action signal called the pin bar.  The pin bar was first coined by Martin Pring, a famous technician in his own right.  In the mid-2000’s, Pring wrote an excellent book entitled, Pring on Price Patterns, and in it Pring discusses the pin bar.
The pin bar formation is a price action reversal pattern that shows that a certain level or price point in the market was rejected.
The Pin Bar
Before we delve into discussion on how to trade a pin bar, let’s take a look at one:


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