Module 6: The Pin Bar Reversal

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LESSON: Pin Bar Reversal

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]Pinocchio Bars or Pin Bars are very powerful and reliable Price Action setups, when the trader knows when and how to trade and manage them correctly.

Pin Bars are made up of one candle and are very easy to spot.

Pin Bars are reversal signals and signal a reversal in price.

We must remember this and always play them from swing highs and swing lows. They are NOT continuation signals.

A pin bar must have:

• Open and close within previous bar
• Candle wick minimum 3 times the length of the candle body
• Long nose protruding from all other candles (must stick out from all other candles)

Note: Even though I have blue and red candles below, the colors are not important and it can have either color. IT IS THE CLOSE that is important, direction of the nose / wick and where it has formed.

Pin Bar Example:

Pin Bar Example in action:

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