Pins are a very interesting concept in the market place…
#They are designed to trigger the liquidity that is present in the charts, which of course we cannot see.
Notice how we are expecting the red candle to play out…
The prescence of the pins is telling us that the general sentiment to the downside is still very much alive, but that is only because people are experiecning the great emotion of fear…
These pin bars are designed to help us establish the market makers intention at holding zones and still taking liquidity from the traders who are trying to catch the break lower…
How can we use the pin bars…?
They are there for us to understand that things can change, or will change…Once the market maker has absorbed enough liquidity from the downside he will then contain the zone because remember, where the pin starts and finishes on each candle is where someone has placed an order to buy or sell…
The take away for you is this…The pins are going to tell you that zones are being “worked” – In light of where price is and what it has been doing, you can understand what is likely to happen, only if the pins hold their zone…At a moments notice they could even spike lower to induce more traders to short and then reverse….
An exercise for you this weekend can be to go back in the charts, on any coin and look for zones where the pin bars appeared and explore what happened after..Pay attention to vector candles that may appear at these zones…
Also when you see pins to the low, they are inducing shorts, pins to the high, they are inducing longs
I hope that helps you guys
Trade Well My Friends
Tino
