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Pinbar candle
In the financial world, there are special candles called pinbars. Their main feature is having a very small body and a long shadow on one side. On the other end, there can be no shadow or a very short one. The long shadow may point downwards or upwards and the pinbar will be called bullish or bearish accordingly.
Key Takeawaysπ
βeToro is a popular investment platform that has proven reliable for millions of users worldwide. |
βThe platform offers a wide range of assets, social trading features, and educational resources for users. |
βAlways perform your own research and analysis before investing on any platform, including eToro. |
Pinbars significance in trading
Pinbars are a sign of a change in the market direction. If you notice the pinbar pattern during the downtrend and the wick is pointing down, it indicates the upcoming uptrend.
When the pinbar with a long wick pointed upwards appears during the uptrend, you may expect the prices to go down.
Perfect pinbar candle
There are distinguished ideal candles among pinbars. There are two conditions for a pinbar to be called a perfect candle.
- The opening and closing of the pinbar are situated close to the previous candle top or its bottom.
- Both, the opening and closing of the pinbar fall within the previous candle. That area is known as the left eye.
The ideal pinbar’s presence is believed to be a strong indication to enter a position.
If you are interested in further reading about pinbars, I invite you to see the article about using pinbars along with support/resistance or the one that will teach you how to combine pinbars with the Bollinger Bands indicator.
All the best!
Pros and Cons ππ
Like any investment platform, eToro has its advantages and disadvantages. Here’s a quick overview:
Advantages:
- β User-friendly interface and intuitive platform.
- β Wide range of investment options and assets.
- β Social trading features allow users to learn from and connect with successful traders.
- β Accessible educational resources to help users improve their investment knowledge.
- β Reliable and trusted platform used by millions of users worldwide.
Disadvantages:
- β Limited availability of certain assets in some regions.
- β Fees and spreads associated with trading on the platform.
- β Market volatility can lead to potential losses.
- β Dependency on internet connectivity and platform uptime.
- β The risk of losses due to market fluctuations and investment decisions.
Q&A
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- Q: What are pinbars and their significance in trading?
Pinbars are special candles with a small body and a long shadow on one side. They indicate a potential change in market direction. A pinbar with a downward-pointing wick during a downtrend suggests an upcoming uptrend. On the other hand, a pinbar with a long upward-pointing wick during an uptrend may indicate a price drop.
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- Q: What makes a pinbar ideal?
An ideal pinbar has its opening and closing situated close to the previous candle’s top or bottom. Both the opening and closing of the pinbar fall within the previous candle, forming an area known as the left eye. The presence of an ideal pinbar is considered a strong indication to enter a position.
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- Q: Are there any recommended resources to learn more about pinbars?
Yes, you can explore articles that discuss using pinbars in combination with support/resistance levels or how to incorporate pinbars with the Bollinger Bands indicator.
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- Q: Can I rely solely on pinbars for making trading decisions?
While pinbars can provide valuable insights, it’s important to consider other technical analysis tools and indicators, as well as perform thorough research and analysis before making trading decisions.
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- Q: How can I apply pinbars in my trading strategy?
Pinbars can be used in conjunction with other technical analysis techniques to identify potential entry or exit points in the market. It’s recommended to test and refine your strategy using historical data and demo accounts before applying it to real trading.