Pin & Engulf-The Advanced Supply and Demand Trading Strategy 2024

Support and resistance, or supply & demand, is typically the foundation of most well-rounded trading strategies.

But today’s market structure is not the same as before. It changes time after time. Most strategies require periodic revision.

The supply and demand trading strategy is also not an exceptional one. You have to know some advanced concepts to identify the advanced supply and demand trading zones.

Regardless of the vast array of methods highlighting tradable support and resistance levels or S & D zones, few approaches stand superior on this market dynamics. Some of them are well known, some of them are not, some are old, some of them are new.

Pin & engulf strategy is a new one. This advanced supply and demand zones trading concept helps you to spot tradable zones to trade with confidence.

Many supply and demand traders don’t know about this concept. If you are a price action trader, I can ensure you that it upgrades your current supply and demand trading strategy. It boosts your confidence level and increases your trading odds.

What is pin & engulf?

When noticeable immediate pinbars are engulfed by a supply or demand zone, then a potential trading opportunity is created. It can be called a pin engulfed supply or demand zone.

You have to mark the origin & source of the pin engulfing move with the rectangles.

How to trade a pin & engulf?

Buy trade setup

• Choose your preferred timeframe.
• Look for the prevailing uptrend of the market.
• Find out immediate pinbar/pinbars.
• Wait till price breach it.
• After engulfing the pin bars, find the origin demand zone of the move.
• Draw a rectangle in the zone.
• Place pending order (Buy Limit) at the proximal line.
• When the price comes back to the zone, your order will be triggered.
• You can also wait for the price to come back to the zone and then trigger the market execution order or buy order.

Sell trade setup

• Choose your preferred timeframe.
• Look for the prevailing downtrend of the market.
• Find out immediate pinbar/pinbars.
• Wait till price breach it from a supply zone.
• After engulfing the pin bars, find the origin zone of the move.
• Draw a rectangle in the zone.
• Place pending order (Sell Limit) below the proximal line.
• When the price comes back to the zone, your pending order will be triggered.
• You can also wait for the price to come back to the supply zone and then trigger the market execution order or sell order.

Stop Loss

Place your stop loss a few pips below the distal line for the buy trade setup and a few pips above the distal line for the sell trade setup or stick to your technique.

Risk Reward Ratio

Your risk-reward ratio will be 1:3 or up to the next trouble area. You have to choose one preferable exit technique.

An Example

Here, we see a couple of pinbars. An immediate pinbar which is the most important precondition of this strategy is also formed.

Price moved sideways. Then it creates a demand zone with a beautiful bullish engulfing candle and breach the pinbars.

Now, we can draw a rectangle in the zone and wait for the price to come back. We can keep a pending order (Buy Limit) on the proximal line.

If you are very much suspicious, wait for the price to come back and trigger the market execution order with your proper entry technique.

Price comes back to our demand zone. Our pending order is triggered.

If you want to pull the trigger with market execution order, go to lower timeframes, look for candlestick pattern, 2B, counter-trend break etc for entry confirmation.

Take profit is hit. The risk-reward ratio was 1:3.

I think this advanced supply and demand trading strategy is clear to you now.

Important Note

If the source of the move works, avoid the origin zone. If the source zone doesn’t work you can execute your trade at the origin supply/demand zone. If the source of the move works, the origin of the move may not work.

Is It an Intraday Supply and Demand Trading Strategy?

Absolutely. It works better in lower timeframes. It is a powerful intraday supply and demand trading strategy that increases your daily trading odds.

Bottom Line

Executing a trade using the pin & engulfing strategy is very easy. Because you can easily spot the tradable source or origin of pin engulfing move. You can treat this advanced supply and demand trading concept as a confluence pattern. For a better understanding of this advanced supply and demand trading concept, you can view this video.

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