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Pin bar

A pin bar is a candle with a very long wick on one side and a small body on the other, showing a clear rejection of a price level.

The name comes from “Pinocchio bar”: the wick “lies” about the market's direction. In practice it covers the hammer, the shooting star and their variants. The wick is usually at least two thirds of the candle.

Price action traders use it at key levels: support, resistance, a moving average, a Fibonacci zone. A bullish pin bar rejecting daily support in an uptrend is the textbook case.

Classic management: enter on a break of the body or on a retracement into the wick, with the stop beyond the tip of the wick. A pin bar against the larger trend, away from any level, is a weak signal.

The full lessonThe candlestick patterns every trader should knowDoji, hammer, shooting star, engulfing, morning star and inside bar: learn to recognise the key candlestick patterns and when they actually matter on a chart.← Full glossary