When it comes to Forex trading for beginners, the pin bar is king. This is because it’s a very obvious pattern, making it easy to identify on a chart. It’s also one of the easier strategies to trade.
Notice how the market came into resistance during a rally but was soon able to break through that resistance. One of the basic principles of technical analysis is that former resistance becomes new support. Sure enough the market found support at former resistance and formed a bullish pin bar in the process.
Let’s take a look at a bullish pin bar that formed on the GBPCAD daily chart.
In the chart above, GBPCAD met resistance after an extended move up. Once the market broke through resistance, it found new support and formed two bullish pin bars. Shortly after forming these pin bars, the market continued its rally for an additional 370 pips.
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