Pin bar and Inside bar Combo Patterns – A pin bar is a price action strategy that shows rejection of price and indicates a potential reversal is imminent. There are two main ‘combo patterns’ you should focus on learning.
1) The pin bar + inside bar combo, consists of a pin bar that consumes a small inside bar toward the nose of the pin (the pin bar’s real body).
2) setup is simply a pin bar that’s also an inside bar.
How to Trade the Pin Bar + Inside Bar combo pattern
When looking such patterns, you will first be looking for just a pin bar, if you see a pin bar immediately followed by an inside bar that’s contained within the high-to-low range of the pin bar, then you have a pin bar + inside bar combo pattern. As mentioned above, it’s ideal of the inside bar forms near the pin bar’s nose (real body).
Pin Trading Strategy
Of the two combo patterns discussed in this tutorial, the most powerful and it’s an ideal setup to trade on the daily chart either from pullbacks to key levels or as breakout plays in trending markets on the 4 hour or daily charts.
How to Trade the Inside-Pin pattern
Inside pin bars are exactly what their name suggests; pin bars that are also inside bars. These setups seem to work best in trending markets and on the daily chart time frames.
In the example below, we can see a strong uptrend was in place prior to the formation. We can then see price broke out above the high of the mother bar and this would have been the entry point into the trend. Traders can place a ‘buy on stop’ entry just above the mother bar high on an inside-pin bar combo setup like this one. Then as price breaks out in-line with the trend, you are brought into the trade in-line with the current market momentum.