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Pin Bar Trading Strategy | Hammer and Shooting Star Secrets - YouTube
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Hey traders, welcome back to Easy Trading Tips.
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In this video
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we will learn a very effective Pin bar Trading Strategy
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and I will also tell you my secrets of
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Hammer and Shooting Star trading.
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The Hammer Pin bar is the most important
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and widely used candlestick pattern among traders.
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It consists of a small body and a long lower shadow
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that is more than three times longer than its body.
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A very small upper shadow will be better than no upper shadow.
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We can also trade without an upper leg
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but if there is such a small upper leg
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then you will get better results.
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I made two separate videos
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on Hammer and Shooting Star
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where I told the size of the body
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size of the lower and upper legs in detail.
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Video links are in the video description
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you should watch those videos
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to gain more knowledge on Hammer and Shooting Star.
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This pattern is seen at the bottom of the down trend
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and is mostly used as a warning signal for the trend
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to change from a downward to an upward direction.
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The color of this candle should be green for better results.
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To determine the perfect and profitable Hammer
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first, you must check that there must be 3 red candles
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before the hammer candle
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and the last red candle should be smaller
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than the previous candle.
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This is the first and most important condition for profitable trading.
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Now, let's take a look at the conditions of a perfect Hammer candlestick that works.
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No. 1: There should be a small green body with a longer lower leg.
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The leg should be more than three times the size of its body.
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No. 2: As shown in the picture
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there should be a small upper leg.
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No. 3: The hammer must be formed in the support or oversold area.
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When you see a perfect hammer at the bottom of a downtrend
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then it is a warning signal indicating a change
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in the direction of the trend
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from a downward to an upward.
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We must wait for the confirmation of the next candle.
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If the next candle breaks the high point of the hammer
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then we should buy here
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using SL just below of the low of the Shooting Star
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and keep the profit target at a ratio of 1:1.5.
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The shooting star pin bar is an inverted version of the hammer pin bar
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and is the most important and widely used among traders.
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It consists of a small square body and a long upper shadow
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which is more than three times the size of its body
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and there should be a small lower leg.
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This pattern is seen at the top of an uptrend
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and it is a warning signal for the trend to change from up to down.
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Let's take a look at the conditions of a perfect Shooting Star candlestick pattern.
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No. 1: There should be a small red body with a longer upper leg.
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The leg should be more than three times the size of its body.
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No. 2: As shown in the picture, there should be a small lower leg.
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No. 3: The Shooting Star must be formed at the resistance or overbought zones.
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When you see a perfect Shooting Star at the top of an uptrend
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you know that there is a warning signal indicating that the trend change
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from upward to downward direction.
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We must wait for the confirmation of the next candle.
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If the next candle breaks the low of the Shooting Star
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then we should sell here
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using SL just above the high of the Shooting Star
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and keep the profit target at a ratio of 1:1.5.
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Let's take a look at a few examples of perfect Hammer and Shooting Star patterns.
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If you like this video
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please thumbs up and subscribe to our channel
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leave your comments below
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thanks for watching this video
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take care and see you next time.
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