What is Pin Bar pattern?

Pin Bar Pattern.

 The Pin Bar (short for Pinocchio Bar) is a single-candle reversal pattern used in price action trading. It signals a potential reversal in market direction, and it's popular among traders for its simplicity and reliability when confirmed by context (like support/resistance or trend).

📌 What Is a Pin Bar?

A Pin Bar has:

  • A long tail (wick) — showing rejection of price in that direction.

  • A small body — near one end of the candle.

  • A very short or no wick on the opposite side.

🔼 Bullish Pin Bar

  • Appears after a downtrend.

  • Long lower wick shows rejection of lower prices.

  • Body is near the top of the candle.

Example.1:


✅ Suggests buyers are taking control.

🔽 Bearish Pin Bar

  • Appears after an uptrend.

  • Long upper wick shows rejection of higher prices.

  • Body is near the bottom of the candle.

Example.1:




Example.2:


✅ Suggests sellers are taking control.

📊 Characteristics

FeatureDescription
Tail (Wick)Should be at least 2/3 of total candle size
BodySmall, at one end of the candle
ContextAppears at key support/resistance, trendlines, or Fibonacci levels

🧠 Interpretation

  • Shows false breakout or trap move (hence “Pinocchio”).

  • Works better when used with trend analysis, support/resistance zones, and volume.

  • Must be confirmed by the next candle moving in the direction of the reversal.

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