Pin Bar With Stochastic Oscillator Forex strategy

Pin Bar Strategy Pattern Pin bar filtered by a momentum indicator and a stochastic indicator. Separately, the signals from these tools cannot be called absolutely reliable. The strategy is called "Key" because the Pin bar model is similar to a key.

Strategic options:

Currency pair: any

time frame 4H, daily weekly and montly.

indicators:

Stochastic with parameters 14; 3; 3.

Trading conditions according to the key strategy

Buy

After the downtrend, we find the bullish Pin bar. In a downward trend, the new candle shows new minimum values, but closes above the closing price of the previous candlestick;

The stochastic indicator is located in the oversold area (below level 20) and the signal line is touching / merging with or below the main line;

At the opening of the next candle, open a buy deal;

If at the time of the final formation of the pin bar the signal line of the stochastic indicator is even higher than the main one, then you can wait for a signal from this indicator for another candle, but not longer. , the signal line should already be clearly lower than the main one, but contact and union of the main and signal lines are not considered.

In addition, the model should not be broken:

when the price has fallen below half of the previous candle;

when the price has gone beyond the closing level of the previous candlestick, the distance is greater than the size of the previous candlestick.

Sell

After a downtrend, we find a bearish Pin bar. On a bullish trend, the next one updates the maximum, but closes below the closing price of the previous candlestick.

The stochastic indicator is located in the overbought area (above level 20) and the signal line is touching / merging with or above the main line.

At the opening of the next candle, open a buy deal;

If the stochastic signal line is even lower than the main one at the time of the final formation of the pattern pattern of the Pin bar, then you can wait for a signal from this indicator for another candle, but not longer. However, in this case, the signal line should already be clearly higher than the main one, but contact and union of the main and signal lines are not considered.

Furthermore, the model in question should not be broken:

when the price has risen more than half of the previous candle;

when the price has gone beyond the closing level of the previous candle to a distance greater than the size of the previous candle.

Stop Loss and Take Profit setting

Stop loss is below / above the last extreme;

Take profit is equal to the size of the double stop loss;

When the transaction reaches a profit equal to the size of the stop loss + 10 points, we transfer it to the balance;

If, after the formation of the Pin bar for the next 3 candles, the price is in the negative zone or equal to the opening price, the transaction is closed at the market price.