Price action: how to trade pin bars
Identify bullish and bearish pin bars, understand what the long wick tells you, and learn how to set entry, stop loss, and target.
Mark · Trader & Founder, Social Forex
What is a pin bar?
A pin bar (short for Pinocchio bar) is a single candle with a very long wick and a small body. The long wick shows that price moved strongly in one direction but was rejected — buyers or sellers pushed back hard enough to close price near the open.
Bullish pin bar at support
A bullish pin bar forms when price dips into a support zone, is rejected, and closes back near the top of the candle. The long lower wick is the rejection signal.
What to look for: small body sitting near the top of the candle, long lower wick penetrating a support zone, and a downtrend or pullback leading into it. The longer the wick relative to nearby candles, the stronger the signal.
Bearish pin bar at resistance
A bearish pin bar forms when price spikes into a resistance zone and gets rejected. The long upper wick shows sellers took control.
What to look for: small body near the bottom of the candle, long upper wick spiking into a resistance zone, and an uptrend or rally leading into it.
How to trade a pin bar
What makes a pin bar stronger
Common mistakes
Trading every pin bar you find is the fastest way to lose money. A pin bar in the middle of a range, against the higher timeframe trend, or with a short wick relative to nearby candles carries much lower probability. Always ask: where did the pin bar form, not just what it looks like.
Content is for reference only, not investment advice. Forex trading carries high risk.
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