On the evening of May 7th, AICoin researchers conducted a live graphic and textual sharing of the "Pin Bar Profit Signal Strategy (with Membership)" in the AICoin PC-end Group Chat Live. Below is a summary of the live content.
I. Principle of Pin Bar Signal Formation
An upward pin bar is generally formed by oversupply, while a downward pin bar is formed when there is undersupply. Therefore, an upward pin bar generally indicates a bearish trend, while a downward pin bar generally indicates a bullish trend.
(1) Benefits
It can provide warning alerts, automated trading, and assist individuals in monitoring the market. It is recommended to use a 5-minute cycle.
(2) Performance of Pin Bar Signals under BTC:
Red upward pin bar indicates shorting; green downward pin bar indicates going long.
(3) Performance of Pin Bar Signals under ETH:
(4) Focus Points
First point: Whether there are shadows, for example:
Second point: Amplitude
Third point: Performance of the entity
II. Building Pin Bar Signal Indicators
(1) Open the custom indicator below the k-line
(2) Click on "New"
(3) Create a new blank programming script
(4) Copy the algorithm to the editor and save
// This indicator is created by AICOIN Research Institute. For any usage issues, you can join the indicator community for consultation
//@version=2
// Amplitude threshold
amplLimit=0.003
// Entity threshold
solidLimit=0
// Shadow limit
shadowPctLimit=0.002
// Calculate upper shadow
overshadow = high - max(open, close)
// Calculate k-line entity
solid = abs(close - open)
// Calculate lower shadow
undershadow = min(close, open) - low
// Calculate amplitude
ampl = (high - low) / close[1]
// Calculate upper shadow percentage change
overshadowPct = overshadow / max(open, close)
// Calculate lower shadow percentage change
undershadowPct = undershadow / min(close, open)
// Pin bar judgment algorithm
pinbar = 0
if (ampl > amplLimit) {
if (solid > solidLimit && undershadowPct > shadowPctLimit && overshadowPct > shadowPctLimit) {
pinbar := 4
}
else if (solid >= solidLimit && undershadowPct > shadowPctLimit) {
pinbar := -1
} else if (solid >= solidLimit && overshadowPct > shadowPctLimit) {
pinbar := 1
}
}
// 1 indicates upward pin bar
// -1 indicates downward pin bar
// 4 indicates both upward and downward pin bars
up = (pinbar 1 and close < open) or (pinbar[1] 1 and close < open)
down = (pinbar -1 and close > open) or (pinbar[1] -1 and close > open)
// up = pinbar == 1
// down = pinbar == -1
// Create corresponding alert conditions for use in the alert window
alertcondition(up, title='Upward Pin Bar', direction="sell")
alertcondition(down, title='Downward Pin Bar', direction="buy")
// Plot on the chart
// plot(close, title="Close")
plotShape(up, title="Upward Pin Bar", shape='arrowDown', color='red', refSeries=close, placement='top', fill=true)
plotShape(down, title="Downward Pin Bar", shape='arrowUp', color='green', refSeries=close, placement='bottom', fill=true)
(5) Automatic trading section, add if needed
// Close short and open long
exitShort(down, price='market', amount=1)
enterLong(down, price='market', amount=1)
// Close long and open short
exitLong(up, price='market', amount=1)
enterShort(up, price='market', amount=1)
(6) Select to move to the main chart
III. Algorithm Analysis
(1) Definition of this pin bar strategy
This means: Once the k-line amplitude reaches 0.003, and the shadow ratio reaches 0.002, which is 0.2%.
(2) Perform calculations on different k-line elements, including: shadows, entities, amplitudes, and upper and lower shadow amplitudes.
(3) Perform three-level judgments
First-level judgment: Pin bar with upper and lower shadows
Second-level judgment: Downward pin bar
Third-level judgment: Upward pin bar
(4) Combine k-line open and close directions to make signal judgments
（5）Setting up alert conditions for convenient alert reminders (receive notifications on mobile, computer, and voice)
（6）Displaying signals on the chart
（7）Customize your own exclusive indicators
You can adjust the limits of amplitude and shadow based on your own observations and analysis.
If you prefer to adjust the reminders for buying on upward pin bars, you can do so here.
（8）Find this strategy in the Indicator Plaza
For PRO members and signal alert members, these are high-quality tools tailored for lazy friends, and custom indicators can help any AICoin user plan their trades and trade their plans. For more custom indicator strategy displays and multiple alert reminders, feel free to experience the custom indicator membership for free for a limited time by subscribing to the signal alert/PRO K-line. Click the link below to subscribe and experience: https://aicoin.com/en/vip/chartpro
Recommended Reading
For more live content, please follow the AICoin "News/Information-Live Review" section, and feel free to download the AICoin PC-end app.
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