A pin bar (or pinocchio bar) is a candlestick pattern with a small body and a long wick (tail or nose) that “lies” about the direction—price went far in one direction but reversed, closing near where it opened. Pin bars signal strong rejection of a price level and potential reversal, especially when they form at key support or resistance.
- Small body with long wick (2-3x body size)
- Long wick shows price rejection at that level
- Bullish pin bar: long lower wick; bearish: long upper wick
How Pin Bars Work
Pin bars show intraperiod rejection:
Bullish Pin Bar:
| ← Small upper wick (or none)
[ ] ← Small body at top
|
| ← Long lower wick (rejection)
|
Price went down, got rejected, closed near high
= Bullish signal (buyers stepped in)
Bearish Pin Bar:
|
| ← Long upper wick (rejection)
|
[ ] ← Small body at bottom
| ← Small lower wick (or none)
Price went up, got rejected, closed near low
= Bearish signal (sellers stepped in)
Quick Reference: Pin Bar Trading
| Pin Bar Type | Wick Direction | Signal | Entry |
|---|---|---|---|
| Bullish | Long lower wick | Buy | Above high |
| Bearish | Long upper wick | Sell | Below low |
Example: Trading Bullish Pin Bar
Pin Bar at Support:
| Element | Value |
|---|---|
| Support Level | ₹500 |
| Pin Bar Low | ₹498 (wick) |
| Pin Bar Open | ₹508 |
| Pin Bar Close | ₹510 |
| Pin Bar High | ₹512 |
| Entry | ₹514 (above high) |
| Stop | ₹496 (below wick) |
| Target | ₹532 (1:1) or trail |
Pin bars have small bodies with long wicks showing price rejection. Bullish pin bars have long lower wicks—buyers rejected lower prices. Bearish pin bars have long upper wicks—sellers rejected higher prices. Trade in the opposite direction of the wick.
Pin Bar Criteria
Valid Pin Bar
- Wick at least 2x body length (3x is better)
- Body at one end of the range
- Little or no wick on opposite side
- Clear rejection of a level
Best Pin Bars
- At key support/resistance
- With the dominant trend
- At Fibonacci levels
- With confluence (multiple reasons)
Pin Bar Trading Strategies
Entry Options
- On next candle: Enter when price breaks beyond the pin bar
- 50% retracement: Enter if price retraces into the pin bar body
Stop Placement
- Beyond the wick end
- Gives room for price to retest without stopping out
Target
- Minimum 1:1 risk-reward
- Key levels for exits
- Trail stop for extended moves
Pin Bar Context
With Trend
Pin bar in direction of larger trend is more reliable.
Counter-Trend
Pin bar against trend at major level can work but riskier.
In Ranges
Pin bar at range extremes (support/resistance) works well.
Common Mistakes
-
Trading every pin bar – Need context. Pin bar in empty space is weak.
-
Ignoring the trend – Counter-trend pin bars have lower success.
-
Wick too short – Small wicks aren’t strong rejection signals.
-
No stop loss – Even good pin bars fail. Protect capital.
How JournalPlus Tracks Pin Bars
JournalPlus lets you tag pin bar entries, tracking your success rate with this popular price action pattern.
