Pin Bar is a reversal signal that Price Action analysts often use because of its simplicity and high accuracy rate. Let's learn about Pin Bar candles through the following content:

• What is a Pin Bar candle?

• Classification of Pin bar candles

• Pin Bar candlestick meaning

• Install Pin Bar candles on Tradingview

• How to trade effectively with Pin bar candlesticks

• Experience when using Pin Bar candles

What is a Pin Bar candle?

Pin Bar is a Japanese candlestick with a candle shadow that is 2 to 3 times longer than the candle body - this is a Japanese candlestick with a relatively special shape. Long candle shadows represent price rejection (bullish or bearish) from the market. In the Price Action method, Pin Bar is one of the most powerful reversal candlestick patterns trusted and commonly used by most traders. Pin Bar candles are true in most markets from Crypto to stocks and Forex.

A standard Pin Bar candlestick is:

• The longer the candle shadow or candle wick, the better. A good ratio is about 2/3 of the total length of the candle.

• The candle body is small and not too large, a nice proportion is about 1/3 of the total length of the whole candle.

• The candle tip of the Pin Bar is absent or has negligible length.

Classification and meaning of Pin Bar candles

Pin Bar candles have 2 types:

• Bullish Pin Bar candlestick reversal (Bullish Pin Bar)

• Bearish Pin Bar candlestick

In there:

Bullish Pin Bar 

Bullish Pin Bar is a bullish reversal candlestick with a small upper body and a lower candle shadow that is 2 to 3 times longer than the candle body.

After a strong downtrend, the Bullish Pin Bar candlestick appears indicating a decline in price. When the sellers try to push the price down, the buyers push the price back up, forming a long candle shadow. Normally, Bullish Pin Bar candlesticks appearing in support areas will increase the rate more accurately.

Bearish Pin Bar

Bearish Pin Bar is a bearish reversal candle with a small body at the bottom and a candle shadow above that is 2 to 3 times longer than the candle body.

After a strong uptrend, the Bearish Pin Bar candlestick appears indicating bullish rejection. When the buyers try to push the price up, the sellers push the price back up and down, creating a long candle shadow. Normally, Bearish Pin Bar candlesticks appearing in resistance areas will increase the rate more accurately.

Install Pin Bar candles on Tradingview

If you already understand what the Pin Bar candle is, then go to the step of installing the Pin Bar candle on the trading platforms.

To install Pin Bar candles on any platform, the first thing you need to do is create an account, log in and go to the chart!

After registering, click on "Chart" to go to the analysis chart.

Once on the chart, follow these 3 steps:

• Click on the Fx icon in the top bar.

• In the search box, please enter the word "Pin Bar".

On Tradingview, there are currently many indicators to help you detect Pin Bar candles. So you can choose a few indicators to check the accuracy. A tip when choosing indicators is to try indicators with high likes.

So you have installed the Pin Bar candlestick. When this frame is turned off the indicator will appear below the price.

03 ways to trade with Pin Bar candlesticks

Buy with bullish Pin Bar candlestick

• As soon as the Pin Bar candle closes, place a Buy order (Buy stop) above the top of the Pin Bar candle, and set the stop loss a little lower than the shadow of the Pin Bar candle to prevent being swept. This is the safest way and prevents the price from increasing when the pattern appears.

  

Place a Buy order as soon as the Pin Bar candlestick closes, and set your stop loss a little lower than the shadow of the Pin Bar candlestick to prevent being swept away.

Place a Buy (Buy Limit) order at a price equal to half of the Pin Bar candle. And set the stop loss a little lower than the Pin Bar candlestick shadow to prevent being swept away. This method will help you get the highest profit, but sometimes there will be cases where orders are not matched because the price always increases without rebounding.

Sell ​​with a bearish Pin Bar candle

• As soon as the Pin Bar closes the candle, place a Sell order (Sell stop) at a position a little lower than the candle's body, and place the stoploss a little far from the top of the Pin Bar candle to prevent being swept away. This is the safest way and prevents the price from falling when the pattern appears.

Place a Sell order as soon as the Pin Bar closes the candle, and set your stop loss a little higher than the shadow of the Pin Bar candlestick (or the highest peak of the previous rising wave) to prevent being swept away.

Please place a Sell order (Sell Limit) at a price equal to half of the Pin Bar candle. And set the stop loss a little higher than the Pin Bar candlestick shadow to prevent being swept away.

Experience when using Pin Bar candles

To use Pin Bar candles effectively, you need to pay attention to the following issues:

• Trade with the trend, limit Trade against the Trend: Once you have determined that the main trend of the price is up, limit Trade against the trend no matter how beautiful the falling Pin Bar is.

• The position of the Pin Bar is more important than its structure: A bullish Pin Bar that is not beautiful but appears in an uptrend has a higher chance of winning than a bearish Pin Bar with a nice ratio but appears in the middle amidst an uptrend.

• The higher the trading volume at the Pin Bar candle, the better: The higher the VOLUME, the greater the number of traders participating in buying and selling in that area. Therefore, the model's accuracy rate will be higher.

• Pin Bar candles that occur in support or resistance price areas will have a higher probability of winning: If Pin Bar candles occur in support or resistance price areas, the Pin Bar candles are more reliable, and often have a purpose. The price runs very far.

• Pin Bar candles should be combined with other indicators: to increase the probability of accuracy when entering orders, you should combine trend reversal indicators such as MACD,RSI, STOCH,... If the Pin Bar appears where there is signal. Reversal divergences will improve the accuracy rate.

summary

So I have shared what Pin Bar Candles are and how to trade with Pin Bar candles as well as some notes to increase the probability of a successful Trade.

This learning series is for those who have just begun to learn about Pin Bar Candles as well as technical analysis so they can easily read, understand and remember.

If you have any questions, you can give your feedback to MarginATM or comment below! Wishing you success!