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Best Pinbar Indicator MT4 and MT5

best pinbar indicator mt4 and mt5

best pinbar indicator mt4 and mt5

The pin bar is one of the simplest and, at the same time, powerful price action reversal patterns. It is quite easy to visually find it on the chart, but it is just as easy to confuse it with other candlestick formations. Therefore, special indicators have been created to automatically identify and show pin bars on the chart.

The most convenient tools are those with an alert (sound notification) since they allow the trader not to constantly monitor the chart. Let’s take a closer look at the most popular pin-bar indicators and how they work.

Pin bars indicator: download for the terminal

The indicator is called “Pin-bar”. It is one of the three most popular tools for finding this candlestick formation on the chart. Pin Bar is convenient because it finds a pattern on the chart and shows its direction. A pin bar is a reversal pattern consisting of two candles, and the second must be completely absorbed by the first (including both shadows).

One of the tails of the pin bar is always long, and the other is short. The type of pattern depends on the direction of the long shadow. If the lower shadow is long, then you have a bullish pin bar. If the upper shadow turns out to be long, then the chart shows a bearish formation.

Pin bar Indicator Download and setup

The Pin-Bar indicator is custom. Therefore it is absent in the standard set of terminal tools. You can download it at the following link.

Download Pin Bar Indicator MT4

Step by step installation:

  • Open MT4 or MT5 terminal.
  • Execute the command by simultaneously pressing the Ctrl + Shift + D keys, or open the data directory through the “File” main menu item.
  • In the opened directory, find the “MQL” folder, and in it – the “Indicators” folder.
  • Copy files from the downloaded archive to the “Indicators” folder.
  • Reload the terminal.

After installation, add the indicator to the chart of the selected currency pair. To do this, double-click on its name in the “Navigator” menu. Indicator parameters settings look as shown in the screenshot.

In the “Colors” tab, you can set the color display of the instrument’s signal arrows. The rest of the parameters can be left as standard.

Pin Bar signals

The tool gives signals in the form of small arrows, the direction, and color, indicating the type of deal that can be concluded. For instance:

  • A red arrow pointing down appeared above the signal candle (pin bar). This is a sign of a bearish pin bar and, accordingly, a signal to open a sell order.
  • A green arrow pointing up has formed under the signal pin bar. This is a sign of a bullish pattern. Therefore, you can open a buy position.

Despite the Pin-Bar indicator signals’ simplicity and accuracy, it is quite risky to make deals based on this data only. Pin bars, although they are strong reversal patterns, do not work out in all cases. Sometimes the price just rolls back a little and then moves back in the previous trend direction.

To minimize risks and weed out false signals, follow three simple rules:

  • Consider only those indicator signals that appear near an important support/resistance level. Such patterns work out 90% of the time.
  • Make deals only in the direction of the global trend, determined by the higher timeframe. For example, if the market has a stable uptrend, then open buy orders only, and ignore sell signals.
  • Consider only those patterns that are fully formed. Many traders make a gross mistake when trading weak patterns. One of the pin bar’s tails must be at least 3-4 times longer than the body of the candle. If the candlestick shadows are short, then the signal is better to ignore.
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Important! The longer the pin bar shadow, the stronger the signal.

The Pin Bar indicator is suitable for working with any asset, including precious metals and stocks.

Pin Bar Detector indicator

The Pin Bar counterpart is the PinBar Detector tool. The difference between the two is in the visual presentation of the signals. PinBar Detector indicates patterns not with arrows but with colored emoticons.

A green emoticon under the pin bar signals the need to open a buy trade, while a red emoticon above the pin bar indicates the possibility of placing a sell order.

Another feature of the Pin Bar Detector is that it can alert when a pin bar appears to the email specified in the settings.

The instrument also comes with a standard alert function. The indicator is more suitable for trading on timeframes from h1 to w1. It gives too many signals on small time frames, most of which are either false or too weak to enter a trade. The installation process for the Pin Bar Detector is standard, like for any other indicator.

Pin Bar Dashboard – an indicator of pin bars with alert

Another tool for identifying pin bars is the Pin Bar Dashboard. It is a little more difficult to use than PinBar, but it gives the trader much more information. Another important advantage is the presence of the alert function (sound signal).

Pin Bar Indicator Installation and configuration

The installation of the tool is standard. First, you need to download the archive with the distribution file. After that, launch the terminal, open the data directory via the “File” menu and load the PinBarDashboard.ex4 file from the downloaded archive into the folder with indicators.

Next, you need to restart the terminal, open the “Navigator” menu, find this tool there, and drag it onto the working chart with the left mouse button. The tool settings window looks like the screenshot below. The most important is the Input Parameters tab. Here you can fully customize the instrument to suit your own needs.

The “Symbols” parameter specifies which currency pairs charts the pin bars’ search will be performed. You can choose several pairs at once. After choosing assets, you need to configure the list of timeframes. For each TF, you can specify the value “True” or “False”. “True” enables searching for a pattern in the given interval, and “False” disables it.

For example, if you only need signals on a 30-minute chart, then for the M30 TF, you need to specify the value “True” and the rest of the timeframes – the value “False”. In the tabs “Colors” and “Display,” you can customize the appearance of the indicator, as well as enable or disable sound notifications about signals.

Pin Bar Indicator View on the chart

Detailed information about the market’s state and current pin bars will be displayed in the basement window under the working chart. The toolbar looks like a table with several columns and sorting the data in ascending and descending order.

Each line is responsible for a specific pin bar that was found on the chart. For each pattern, the indicator displays the following information:

  • Symbol. The name of the currency pair on which the pattern was found.
  • TimeFrame. The timeframe on which the pin bar was found. Direction. The type of pattern found. Bearish is a bearish formation, and Bullish is a bullish formation.
  • Pattern. Shape type. In our case, each line contains the name of the pattern – “Pin Bar”.
  • Age. The age of the pattern. This column shows how many bars or candles a given pin bar was formed ago.
  • Completion indicates the close price of the pin bar.
  • Chart. Link to the chart where the pin bar was found.
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For the convenience of the user, the lines are highlighted in different colors. Red denotes bearish pin bars, and green denotes bullish pin bars.

By default, the instrument will signal the emerging pin bar using the standard alert function of the MT4 or MT5 terminal. The user will hear an audible alert and see an alert window that appears on the screen. An example of such an alert is shown in the following figure.

The found formations are marked with a blue or red smiley face on the chart, depending on the type of pattern. The smiley color will be red for bearish pin bars, and for bullish ones, it will be blue.

Recommendations for trading on the Pin Bar Dashboard

The main mistake newbies make when trading the Pin Bar Dashboard is to interpret all of its signals as a call for immediate trade. It should be borne in mind that the indicator only indicates the pin-bar found on the chart and shows the expected direction of the price in the future.

After receiving such a signal, a comprehensive analysis of the graph is still required. The simplest filter that can be used when making trades is support and resistance levels. If a pin bar is formed near one of these levels, then the likelihood of its positive development increases significantly.

Important! Strong levels are those levels from which the price bounced off three or more times.

The stronger the level near which the pin bar is formed, the stronger the signal to enter the market. For example, a bullish pin bar has formed on the chart near the support level.

This is a clear signal to open a buy order. In this case, take profit should be set near the near resistance level, and the protective stop loss should be set slightly below the support line. Simultaneously, the size of the take profit must be at least 1.5 times larger than the stop loss.

If the indicator pointed to a bearish pin bar near the resistance level, then a sell trade should be opened. In this case, the profit would have to be set near the support line and stop-loss – 3-4 points above the resistance line.

This indicator’s main advantage is the function of searching for pin bars simultaneously on different currency pairs and different time frames. Any of the similar tools do not provide this opportunity.

Thanks to the multi-timeframe and multi-currency analysis, a trader can receive many more signals to enter the market. In addition to this tool, you can also use any of the timeframe indicators.

Average Daily Range – an indicator of exact price levels

When trading with pin bars, it is very important to correctly identify strong price levels and enter a trade on time. The Average Daily Range (ADR) indicator will help you with this. Its name translates as “daily average range.”

The tool plots exact price levels on the chart, guided by which you can easily trade the pin-bar formation.

Installing ADR for profitable trading

You need to install any pin-bar indicator on the chart, as well as the ADR tool. When the pin-bars indicator gives a signal about a pattern’s appearance on the chart, you should immediately assess its position relative to the ADR levels.

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If the pin bar lies near one of the strong levels, then you can enter the market. Let’s take a closer look at the process of installing and configuring the ADR indicator. You can download the tool at this link…

Download ADR indicator MT4

To install, download the distribution file from the downloaded archive to the terminal data directory. Reload the program. Drag an instrument to the chart from the Navigator sidebar. The settings window will open in front of you. The main parameters of the indicator:

  • Day_X. The number of trading days to be used in calculating ADR indicators. The default is 5.
  • Corner. Location of the window with additional information. A value of 0 – bottom left, 1 – top right, 2 – top left, 3 – bottom right.
  • Daily High / Low lines. This function enables/disables the display of the daily price range lines. The default is “Yes”.
  • Show Weekly Lines. Activates/deactivates the display of range levels for the whole trading week. The default is “Yes”.
  • Mini ADR. This function enables a reduced display of a window with additional information.
  • Font size.
  • Vertical Spacing Equipment. Line spacing of text in the indicator window. You can also customize the color display of the tool.

Calculation of ADR indicator

The ADR indicator calculates the average daily price range for a selected period and based on these calculations, it builds important to support and resistance levels.

Attention! Do not confuse the average daily range with the distance between the Low and High prices within a single day.

For example, if you switch to the D1 chart, then the distance between the opening and closing points of one candle will be considered the daily range. But the average daily range is the average value of all daily ranges for the required period. It is this indicator that calculates the ADR.

Let’s give an example of such a range. For example, you need to calculate ADR for one trading week (that’s 5 days minus weekends). You need to add the values ​​of the daily ranges for all this time (for example, 115 points for Monday + 83 points for Tuesday + 78 points for Wednesday, etc.), and then divide the resulting amount by the number of days (by 5). The resulting number will be the average daily range. By the same principle, this indicator is calculated for any other period. An example of calculations is shown in the figure below.

After the ADR is set, price levels appear on the chart. The most important are the upper and lower levels – these are the ADR boundaries. If a pin bar forms near one of them, then in 90-95% of cases, it will be worked out. These boundaries indicate the range within which the chart is expected to move.

The principle of trading by the indicator of pin bar and ADR

You can trade according to this principle on any timeframes, including small ones (from m5 to m30). The ADR indicator will help weed out false signals and increase the number of successful trades.

First, you need to wait for the moment when a pin bar is formed near one of the strong ADR levels. Further, depending on the type of pattern and level, you can enter a trade. For instance:

A bearish pin bar has formed near the resistance level. We conclude a sale deal. In this case, the stop loss is set just above the resistance line, and the take profit – on the line of the opposite ADR border.

A bullish pin bar appeared at the support level. We issue a buy order. We set the protective stop loss just below this level and set the take profit at the ADR border, the resistance level.

Important! You should never open buy deals when the pin bar is near the resistance level and sell deals when the pattern is near the support line.

Pin bar and ADR indicators combined can be an excellent basis for a profitable trading strategy. The main thing is to be able to correctly decode their signals and not rush into the decision to enter the market. Since the pin bar is a reversal pattern, these indicators can be used as filters when trading macd and stochastic strategies.

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