Hey everyone, I'm new to trading and I'm trying to learn about pin bar candlesticks. Could someone please explain what they are and what the different types are?
Thanks for your help!
What is a pin bar candlestick and what are its types ?
Re: What is a pin bar candlestick and what are its types ?
A pin bar candlestick is made up of a small body and a long tail wick and also a small shadow. Long tail wick can be up or down depending upon the price rejection from resistance or support. long tail up suggest the price rejection from a resistance level with a small shadow below the body and long tail down suggest price rejection from a support level with a small shadow above the body. There are only 2 conditions to determine a valid pin bar candle
1. Body of the pin bar candle must be less than 20% of the total candle.
2. Tail or wick of the candle must be grater than 80% of the total candle.
Bearish pin bar candlestick
Pin bar candlestick in which the long tail is above the body of the candlestick with a small shadow below the body is a bearish pin bar candlestick. Forming of such pin bar indicates the reversal of a bullish trend. Best bearish pin bar candlestick forms at a resistance levels in an overbought condition which show the power of bears overcoming the power of bulls and pulling the market down. Keep in mind to trade only those pin bar that from at certain key levels such as round numbers and Fibonacci levels because traders are most likely to sell or buy from such level.
Bullish pin bar candlestick
Pin bar candlestick in which the long tail is below the body of the candlestick with a small shadow above the body is a bullish pin bar candlestick. Forming of such pin bar indicates the reversal of a bearish trend. Good bullish pin bar candlestick form in oversold conditions at the end of a bearish trend when the price is being rejected form a strong support level. In bullish pin bar candle stick the color of the body does not matter, the candlestick opening price can be greater than closing price or the closing price can be greater than the opening price the meaning of the bullish pin bar candlestick will still reman same the only things that matter in it are the closing price and the location of the candlestick.
1. Body of the pin bar candle must be less than 20% of the total candle.
2. Tail or wick of the candle must be grater than 80% of the total candle.
Pin bar candlestick in which the long tail is above the body of the candlestick with a small shadow below the body is a bearish pin bar candlestick. Forming of such pin bar indicates the reversal of a bullish trend. Best bearish pin bar candlestick forms at a resistance levels in an overbought condition which show the power of bears overcoming the power of bulls and pulling the market down. Keep in mind to trade only those pin bar that from at certain key levels such as round numbers and Fibonacci levels because traders are most likely to sell or buy from such level.
Pin bar candlestick in which the long tail is below the body of the candlestick with a small shadow above the body is a bullish pin bar candlestick. Forming of such pin bar indicates the reversal of a bearish trend. Good bullish pin bar candlestick form in oversold conditions at the end of a bearish trend when the price is being rejected form a strong support level. In bullish pin bar candle stick the color of the body does not matter, the candlestick opening price can be greater than closing price or the closing price can be greater than the opening price the meaning of the bullish pin bar candlestick will still reman same the only things that matter in it are the closing price and the location of the candlestick.