Pin Bar Explained
A pin bar is a candle with a small body and one long wick — a sharp rejection of a price level that often precedes a reversal.
What a pin bar shows
The 'pin' (short for Pinocchio bar) has a long tail and a small body at the opposite end, with little or no wick on the body side. That long wick is the story: price was driven to an extreme during the session and then decisively rejected, closing back near the open.
A bullish pin bar has a long lower wick (rejection of lower prices); a bearish pin bar has a long upper wick (rejection of higher prices). It is the same family as the hammer and shooting star.
Trading the rejection
A pin bar earns its weight from location: at a key level, after a trend, and best of all when the wick sweeps a prior high or low before rejecting. In the middle of a range it is noise.
Enter in the direction of the body on the close or a small retrace, with the stop beyond the tip of the wick. The long wick gives a defined, often favourable risk-to-reward.
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Play Chart Bound free → Try today's Call the Candle →Frequently asked questions
What is a pin bar in trading?
A candle with a small body and one long wick (tail) that shows price was pushed to an extreme and sharply rejected, signalling a possible reversal at that level.
What is the difference between a pin bar and a hammer?
They overlap — a hammer is a bullish pin bar (long lower wick) at the bottom of a downtrend. 'Pin bar' is the general term for either a bullish or bearish rejection candle.
Where does a pin bar work best?
At a significant support or resistance level, after an extended move, and especially when its wick sweeps a prior swing high or low before closing back — not in the middle of a range.