What it is
The Pin Bar (short for "Pinocchio Bar") is a single-candle reversal pattern characterized by a long wick (shadow) that extends at least 2/3 of the total bar length, a small body, and little to no wick on the opposite side.
What it signals: The long wick shows that price pushed strongly in one direction but was rejected. Buyers or sellers stepped in aggressively to push price back. This rejection suggests the market is ready to move the opposite direction.
Pin bars are one of the most reliable price action signals, especially when formed at key support/resistance levels, moving averages, or Fibonacci levels. The longer the wick relative to the body, the stronger the rejection.
The psychology
The Pin Bar is pure price rejection made visible. The long shadow represents a level that was tested and forcefully rejected within a single session. Price traveled to that level, and the market said 'no' emphatically - pushing back to close near the opposite end of the range.
A bullish pin bar (long lower shadow) shows that sellers pushed price down aggressively during the session, but buyers absorbed every order and drove price back up. The shadow is the evidence of the battle, and the small body at the top is the verdict: buyers won.
The power of the pin bar is in its simplicity. Unlike multi-candle patterns that require interpretation, the pin bar tells you exactly what happened: a level was rejected. When that rejection occurs at a key support or resistance level, it provides one of the cleanest trade setups in technical analysis - tight stop beyond the shadow, clear target in the reversal direction.
Identification
- 01Long shadow (tail) - At least 2x the body length, ideally 2.5-3x
- 02Small real body - Body should be in the upper third (bullish) or lower third (bearish)
- 03Minimal or no wick on the opposite side - Clean rejection without confusion
- 04Appears at a key level - Pin bars in random locations are unreliable
- 01Shadow pierces and rejects a key level - Support, resistance, or moving average
- 02High volume - Confirms participation in the rejection
- 03Shadow length 3x or more body - Longer shadows = stronger rejection
- 04Confluence of multiple levels - Fibonacci + horizontal + trendline
- 01Body is too large - Should be small relative to total range
- 02Equal wicks on both sides - That's a doji, not a pin bar
- 03No key level - Random pin bars have low success rates
- 04Short shadow - Less than 2x body doesn't show meaningful rejection
Execution framework
Enter at 50% of pin bar's range for optimal R:R...
Beyond the tip of the pin bar's long shadow. This is the rejection point - if price returns past it, the rejection has failed. Bullish pin bar: stop below shadow low. Bearish: stop above shadow high.
T1: The open of the pin bar. T2: Previous swing level in the direction of the trade. T3: Trail with structure. Pin bars with longer shadows offer better R:R due to tighter stops relative to the move.
Often 1:3 or better. This is one of the best R:R patterns when the shadow is long and the body is small.
Context matters
The Pin Bar is one of the most popular price action signals. Its effectiveness depends almost entirely on location - the same pin bar at a key level is a high-probability trade, while one in the middle of nowhere is noise.
- 01Shadow rejects a well-established support or resistance level
- 02At a confluence of multiple technical levels
- 03Aligned with the higher timeframe trend direction
- 04Volume spike on the pin bar candle
- 05Shadow is 3x or more the body length
- 06Confirmed by follow-through on the next candle
- 01In the middle of a range with no key level
- 02Against the dominant higher timeframe trend
- 03Short shadow (barely 2x the body)
- 04Low volume showing lack of participation
- 05In choppy, trendless conditions
- 06Multiple consecutive pin bars (indecision, not rejection)
The nose (body) should be at one extreme of the candle. Pin bars with the body in the middle are spinning tops, not pin bars.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.