shooting star candlestick And Hammer Candlestick Strategy

Pinbar Candlestick Reversal Signal Trading Strategy

What is Pinbar?

Pinbar is a candlestick reversal signal that shows rejection and reversal on the market.

Pinbar also can be used to determine market direction.
Pinbar consist of 1 single candlestick. There are 2 pinbars which is, bearish pinbar (shooting star) and bullish pinbar (hammer).

Pinbar Characteristic

  • Pinbar should have the long tail(wick,or shadow)
  • Body Candlestick are small.
  • Open and close candle are near at the end of the candlestick.
  • The longer the tail or the shadow the better.
  • It indicates the pressure from the opposite site. 

Shooting Star

If you look at the shooting star candlestick. It looks like pointing the direction downwards. So it will be easy for you to understand where the market movement when it come to the shooting star reversal.

It will give you a signal and shows you the market direction.

Either the body is green or red, that doesn't matter as long as you understand where the candlestick is giving you the direction price to go. 

candlestick reversal signal

Shooting Star Anatomy

The longer the shadow the higher the pressure from the seller. The shadow, sometimes people also call it as wicks show that strength of the shooting star candlestick pointing downwards.

So when you are going to find shooting star candlestick, make sure you are finding the candlestick with long shadow.

Hammer Candlestick

For the hammer candlestick, you need to look at the candle that the shadow is pointing downward while the body located at the top of the candle.

By looking at the candle, you will understand where is the direction of hammer candlestick. It's pointing upwards.

So when you see the hammer candlestick, remember to look for a buy opportunity.

hammer reversal signal

Hammer Anatomy

The longer the shadow, the higher the pressure from the buyer that keep pushing the price upwards.

So when finding the hammer candlestick, make sure you are with the long shadow because the market indicates that the price is pointing upward.

Find buy opportunity.

Look at the pinbar of Shooting Star and Hammer candlestick reversal in the market. We can see that the shooting star is the bearish reversal signal while hammer is the bullish reversal signal.

Have a practice to find the pinbar reversal signal.

candlestick reversal signal

Entry Shooting Star Candlestick Trading

For this strategy, use the stop pending order entry. The stop loss you can set 10pips from the high of the candle. While the entry can be also 10pips from the bottom/low of the candle.

shooting star candlestick

Entry Hammer Candlestick Trading

For entry on hammer also you can use stop pending order to make entry. Stop loss will be 10pips from low of the candle. Buy Stop entry will be 10pips from high of the candle.

see the diagram.

hammer candlestick reversal

Shooting Star and Hammer Candlestick Advance Entry

For this strategy, I can say that it is a bit of advance. This strategy will use limit entry pending order.

You wait for the price to make a retracement before continuing the market movement.

By doing this advance entry, you can reduce the stop loss and minimize the risk of losing trade.

in this case, we wait for the price to make retracement before it continues the market movement.

Entry level is 50% from the shadow.

Shooting Star Limit Entry

The stop loss will be 10pips from the high of the candlestick. While the limit entry is set at 50% from the shadow of the candlestick.

Hammer Limit Entry

Same with shooting star limit entry, what you need to do is to set your stop loss 10pips from low of the candle. While for the buy limit entry, you can set it 50% from the shadow.

hammer candlestick limit order

Related Article: How to do Pending Order

Pinbar Trading

Time Frame H1 and H4
Pair : Major Pair


3 Step To Trade Pinbar

1.Determine Market Trend

2.Wait for the pinbar candlestick to complete

3.Set pending orde


A forex trader who enjoy doing forex naked chart and make profit with forex expert advisor.Also enjoy to socialize with other forex trader in the world.

No comments:

Post a Comment