Before we discuss ideal pin bar placement, we must first understand why pin bars are so effective.
To accomplish this, we must return to basics and discuss the concepts of supply and demand as they apply to the Forex market.
The amount of money available at a price is referred to as supply, whereas the amount of money people will buy at a price is referred to as demand.
As the price rises, so does supply, as traders become more willing to liquidate their positions.
Demand falls when prices fall because traders wait to buy more at lower prices.
The famous supply and demand curve is shown below to demonstrate this relationship.