Pinbar candlestick: 6 Types of Tailed Bar Candlestick Trading Strategies » Learn To Trade The Market


There are many ways to use a pin bar candlestick in a trading strategy. To trade a pattern logically, it is essential to know the reason for a reversal in the trend due to the pin bar pattern. Now price reaches a certain resistance level where sellers are waiting to trigger sell orders with stop losses just above the resistance zone. As mentioned above, the pin bar candlestick is usually a reversal sign. As a result, when it forms, it usually sends a sign that the asset will move in the opposite direction. Therefore, the easiest approach is to open a trade in the opposite direction and then set a stop-loss at the upper side of the pin bar.


A common pin bar trading strategy is the contrarian one. This one refers to a situation where a trader assumes that the original trend will continue. As a result, instead of opening a reversal trade, they go in the opposite direction.


In the illustration below, you can see candlesticks of different shapes, where each candle gives various clues about where the market may head next. I think most of us had our questioned answered by the community or in the live trading room. I guess making the course easier to understand will lead to fewer support questions, questions in the live room, etc. My goal was to make these techniques that I’ve been using as easy to understand as possible.

Three biggest mistakes you must avoid with the Pinbar trading strategy

There is also a small shadow below the bearish candlestick and above the bullish candlestick. This script uses the corrent and the previous two bars to compute the strength of pin bars. The strength of pin bars can be also comared with average true range, so we can evaluate those pin bars are strong or weak.


Therefore, a relatively large mt5 demo account candlestick is a more significant bearish signal than a relatively small one. In the definition of Bullish pinbar & beraish pinbar the images shown look like hammer & inverted hammer. Thanks for sharing the details of this strategy, Rayner.

What does a pinbar candlestick really mean

Almost every time you see a pin bar, you can expect the price to turn in the opposite direction. You should pay more attention to the abnormal ones among the pin bars. What I mean by abnormal pin bar is that the long leg is at least 3 times larger than the body. The chart above shows a pin bar rejection near a previously known support level.

Also, I will explain what the meaning of Pin bar candlestick is as well as introduce effective binary options trading strategy to you. An easy way to spot a pin bar pattern is to first know what it looks like. Next, one of the easiest strategies to use is to use TradingView’s indicator tab and select all candlestick patterns. When you do this, the indicator will scan the chart and identify all candlestick patterns in it. line break signals and alerts can optionally be added. Finally, it isn’t advertised, but Sterling does offer a refund if you’re not happy. I know this because over 50 traders have signed up and saved money with my coupon code. I also adopted the 50% entry very early on, but it took me much longer to trust the confirmation entry. It sounds like you’re off to a great start if you’ve already got those two techniques figured out.

Finding Bullish and Bearish Pinbar Candlestick pattern

If you’re buying groceries, you know how much you’re willing to pay based on your past experiences. This is the easiest way to turn a losing strategy into a winning one. Once you’ve learned it, you’ll never need to memorize another pattern again. Making statements based on opinion; back them up with references or personal experience.

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I have one of your courses, which I intend to reread and study and I read with relish, every article you send me. You are an excellent mentor and I greatly appreciate you and the knowledge you share. Hi Rayner, thanks for the lesson on pin bars, really good. An uptrend will not reverse just because there’s a bearish Pinbar on the chart.

The Classic Pin Bar Candlestick Pattern

All in all, the properties of this candlestick are very important for the successful chart reading. When the pin bar is formed along with the abnormally high volume, it confirms the excessive interest in an asset. Finally, on the 25th, the pin bar appeared , offering a perfect short-sell setup.

If you spot a bullish Pinbar, then wait for a higher high to form . You can have a bullish Pinbar that is a retracement against the trend . And if you see weak momentum followed by a huge bearish Pinbar, it’s likely to be a reversal . If you see strong momentum followed by a small bearish Pinbar, it’s likely to be a pause .

  • Nowadays traders utilize advanced trading methods to come up with less efficient trades.
  • Ensure you constantly have the right stop-loss in place and target a lot more than the danger involved, and you’ll stand high opportunities to make it in the currency market.
  • The trend did continue on its rise, but at its zenith, a less-than-perfect shooting star forms, along with a less-than-perfect engulfing pattern.
  • We have added the necessary annotations to explain the finer points of this candlestick.
  • The key to finding a pin bar is that a small wick is permissible on one end, but the opposite wick must be at least two times the size of the body.

Likewise, bear in mind, that the bigger the target is, the lower the success rate will be, and the lower the target is the greater the success rate will be. When you go into the market on a pin bar pattern, you ought to position your stop loss order best above/below the longer candlewick of the pattern. The range between the entry level and completion of the longer candlewick is the approximate range that should be allowed for the trade to work. When trading pin bars, there are a couple of different entry alternatives for traders. The first, and maybe most popular, is going into the pin bar trade “at market”.

So on the 4-hour timeframe, what you’ll be looking for is a series of higher highs and higher lows after the bullish pin bar forms. And when price breaks above the resistance of these highs, that’s where you’ll be looking to buy. The pin bar candle can be seen frequently on a Forex chart. Nevertheless, the very best tradeable pin bars are generally found at the end of an impulse wave, and extends outside of the preceding cost action. There is no difference between hammer and pin bar candlestick.

If the view is correct, the bullish trade will be initiated. Pring originally named this candlestick the ‘Pinocchio bar’, but this term was soon shortened to pin bar. The candle has a smallish body with little to no tail or wick on one end.

What does the pin bar candlestick pattern tell us about market psychology? Let’s return to the first green circle in the above overview chart. This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection.

Pin bar patternare formed when prices are tested and rejected, which is visually depicted by the long wicks the pin bar leaves. While pin bars can form anywhere on the chart, they are considered a strong pattern when pin bars are formed near support and resistance levels. Pin bars can also be commonly formed near a moving average as well as trend lines.

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