Pin bar reversal
A long wick through a level that closes back on the other side shows rejection. Trade it only at levels you marked first.
Try Pin bar reversal on a real day
A real market day with the date hidden. Run the checklist on the chart, then buy, sell or stay out: the real candles answer.
Check every point of the list before you decide. Stay out if the setup is not there.
The pin bar is the Western name for single-candle rejection patterns such as the hammer and the shooting star. Japanese rice traders like Munehisa Homma, in the 18th century, are traditionally credited with reading such candles.
Why it works
A pin bar's long wick shows that price was pushed through a level and immediately pushed back. The side that failed is often trapped.
The close matters: the body should be in the top third of the candle for a bullish pin, the bottom third for a bearish one.
The rules
Setup
- A marked level: support, resistance, a moving average or the previous day's high or low.
- A candle with a wick at least twice the body, pointing through the level, and a close back inside.
Entry
- Buy stop above the pin bar's high (for a bullish pin).
Stop loss
- Beyond the tip of the wick.
Exit and management
- Target 2R or the next level.
Filters that improve it
- Prefer pins in the direction of the higher-timeframe trend.
- Skip pins whose wick is shorter than the average range.
Worked example
Illustrative EUR/USD example on 4H: the previous day's low is 1.0800. A candle drops to 1.0780 and closes at 1.0815. Buy stop at 1.0820, stop at 1.0777, target 1.0906.
Illustrative numbers, not a recommendation.
Common mistakes
- Taking pins in the middle of a range.
- Ignoring the trend: counter-trend pins fail more often.
How to practise it
In Candlemind's Concept Lab, practise identifying hammers and shooting stars, then look for them only at marked levels in the lessons.
Pre-trade checklist
- Level marked in advance
- Wick at least 2× the body
- Close back inside the level
- Entry above the high
- Stop beyond the wick
Frequently asked questions
What is the difference between a pin bar and a hammer?
A hammer is a bullish pin bar after a decline. The pin bar term covers both bullish and bearish rejection candles.
Which timeframe is best for pin bars?
They are more reliable on 4H and daily charts.