Pin Bar, Exponential Moving Average (EMA) Strategy

Trade Forex daily charts using a Pin Bar & EMA strategy. Identify bullish/bearish pin bars with trend confirmation for high-probability entries.

Published · Updated · Methodology: Price Action

Part of: EMA Strategies

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: Daily charts
  • Markets: Forex pairs (25 mentioned), AUD/USD

Indicators used

  • EMA

Source video

Decoded from: Pin Bar Trading Strategy For Beginners - The Most Important Video You'll Watch This Month by Click Trade Profit — watch the original

Key timestamps:

  • 2:00 - Pin bar definition: tail must be two times the body
  • 2:50 - Bearish pin bars explained
  • 3:20 - Trading pin bars with trend for 59-60% success rate
  • 3:50 - Trend definition using 8 and 20 EMA
  • 4:10 - Best pin bars form near averages in a trend
  • 5:40 - Bullish pin bar additional rule: open/close in top 50% and top third
  • 7:00 - Bearish pin bar additional rule: open/close in bottom 50% and bottom third
  • 7:30 - Trading pin bars in sideways markets (buy low, sell high)
  • 8:00 - Reward to risk: 1:1 recommended for beginners
  • 10:00 - Entry for bearish pin bar: place order underneath the low
  • 10:30 - Stop loss for bearish pin bar: just above the high
  • 12:30 - Entry for bullish pin bar: place order just above the high
  • 12:50 - Stop loss for bullish pin bar: underneath the tail
  • 13:00 - Take profit: 1:1 reward to risk
  • 19:00 - Adding 8 and 20 EMA for trend confirmation

Strategy overview

An exponential moving average smooths price while weighting the most recent bars most heavily, which is why it usually serves as a trend reference rather than a trigger. In this Click Trade Profit lesson it is neither the trigger nor really the subject: the pin bar is — a single candle whose long tail is read as a rejection of the prices it travelled through — and the moving averages only arrive once the candle itself has been defined, brought in to answer the two questions the pattern alone cannot answer. Which way is the trend running, and is this particular pin bar standing anywhere worth trading?

Read in order, the published chapter markers form a narrowing funnel rather than a list of ingredients. The pattern is defined first, the bearish case is walked through on its own, and only then does a with-trend condition appear — carrying a success-rate figure the video asserts and that nothing on this page verifies. A fast-and-slow exponential moving-average pair follows, first as the trend definition and then as a location test: the video's position is that the pin bars worth taking are the ones forming near the averages inside a trend, not wherever a tail happens to look longest. The last marker is asymmetric — the bullish side picks up an extra qualifier about where the candle opens and closes within its own range, while the bearish side is left with what it was given earlier.

What the markers leave out matters as much as what they cover. The runtime is spent qualifying the entry and stops there: no chapter on exits, targets, stops or position size, and no decoded rule set is on record for this entry. The framing is beginner-facing and anchored to daily charts, which sets the pace of the whole approach — one candle closes per session, so every qualifier is applied to a decision made at most once a day, and the title's "Most Important Video You'll Watch This Month" promise rests entirely on that definitional work.

Topics

pin bar strategy · ema strategy · price action · forex strategy · daily timeframe · swing trading · aud usd strategy · trading strategy · candlestick patterns · trend following · tradingview strategy · pine script

Frequently asked questions

What is a pin bar in trading?

A pin bar is a single candlestick with a long tail relative to its body. Traders read the tail as a rejection of the prices it travelled through, and treat the direction of that rejection as a clue about which side lost control at that level.

Why combine pin bars with an EMA?

A pin bar on its own carries no context. In this video an exponential moving-average pair is used first to define which way the trend is running and then as a location test — the argument being that pin bars forming near the averages inside a trend deserve attention, while identical-looking candles elsewhere on the chart do not.

What timeframe is this pin bar approach built for?

Daily charts. That means one candle and at most one decision per session, so the qualifiers stack onto a comparatively slow signal rather than an intraday one — a very different rhythm from pin bar setups traded on 5- or 15-minute charts.

Does the video cover exits and risk management?

Its published chapters stop at qualifying the entry: defining the pattern, adding the trend filter, and judging where the candle should form. No exit, target, stop or position-sizing segment appears in the markers, and no decoded rule set is on record for this entry. Strategy Decoder catalogs what video strategies like this one actually specify, so you can see where a source stops before you trade it.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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