System tools:
  • To determine a trend, we will use the blue MA (21 periods EMA) and the red MA (50 SMA). The trend is up when the blue MA is above the red MA and vice versa.
  • Cycle RSI 6.
  • Master the pinbar candlestick pattern.
How to enter order number 1: trade against the trend with pinbar only when RSI divergence appears.

An example for a sell order:

Buy order example:

How to enter order number 2: trade according to the trend and enter the order with the pinbar (if there appears RSI divergence is a very good setup but is not required).

How to choose pinbar according to Jakone: watch and remember the illustration below:

Figure 1 - the pinbar is hidden in the previous candles, the tail only sticks out slightly upwards. The sellers were eager to push prices down, but the selling was not strong enough to trap the buyers.

Figure 2 - the pinbar deviates completely outward. Before that, the market also had a series of tail candles, showing hesitation, but then the bulls pushed the price out of this zone, but then formed a pinbar. This will be a huge trap for the bulls and the price is sure to go down very sharply. You need to note these pin bars for trade.

The most important thing for a successful trade is that you should never change your trading system, if you have a good, proven trading system, just keep on trading, says Jackson. Most new traders cannot win because they change their trading systems too much.