Pin Bar Detector Indicator MT4 | MT5

The Pin Bar Detector Indicator on MT4 is classified as a pattern indicator, consisting of three bars: Left Eye, Nose and Right Eye. This indicator is primarily used to detect potential reversal, making it a valuable asset in technical analysis. The same principle applies to its version on MetaTrader 5, where the structure of the pinbars remains consistent, though the specifics may vary depending on market conditions.

• Left Eye: For a bearish pin bar, it must be a growing (bullish) bar, and for a bullish pinbar, it must be a falling (bearish) bar.

• Nose: Is the central bar that opens and closes within the range of the left eye, but its maximum(or minimum for the bullish pattern) must extend far from the maximum(or minimum) of the left eye.

• Right Eye: It serves as the confirmation bar, ideally reinforcing the reversal pattern. For bearish pin bars, it often shows a decline, while for bullish pin bars, it typically indicates growth.

By combining this indicator with other trading strategies, traders can better anticipate market reversals and make more informed decisions.

Traders using candlestick patterns can leverage the pin bar to trade in the direction of the expected reversal. The indicator scans the chart for pin bar patterns and highlights their locations by displaying emoticons in GREEN or RED.  A bullish pin bar features a long upper wick, indicating rejection by buyers at higher prices. Conversely, a bearish pin bar has a long lower wick, signaling rejection by sellers at lower prices. For risk management, traders can place a stop-loss above the high of the pin bar for SELL orders or below the low of the pin bar for BUY orders.

For the trading example on metatrader4, at the start of a downtrend, a red pin bar indicates a potential short opportunity. Subsequently, a green pin bar within the same trend suggests a temporary correction.

For the trading example on metatrader5, at the beginning of an uptrend, a green pin bar signals a long opportunity. A red pin bar appearing afterward marks a corrective phase in the trend.