Pin bar: a candle that shows the truth

Any trader will tell you — the pin bar is one of the most honest patterns on the chart. The market tried to go in one direction, didn't make it, and reversed. This is not a coincidence.

How to recognize it?

A small body of the candle + a long tail on one side + almost nothing on the other. The close is at the edges, like a needle. If the price fell, then shot up and closed high — bullish pin bar. And vice versa.

The Main Trap

If a large candle is in front of the pin-bar that covers it, this is not a reversal signal, but a continuation signal. It is called engulfing (engulfing). The previous movement is stronger. Often such a pin-bar is a trap for the impulsive.

How to catch profit?

✅ Waiting for the pin bar to close ✅ On the next candle, place a limit order at the opening price of the pin bar. ✅ Stop just below the tail ✅ Take profit is 2–3 times larger than the stop loss

Example: pin bar at $29,500–$30,000 → limit order at $29,500 → stop at $28,950 → target at $30,850+

Moving Average Filter

Pin bar above MA30 = long, below = short. We do not enter against the average if there is no very strong level.

Essence: a pin bar is not magic, it is reading the market. The market says: “I don't want to go here.” If you listen — you earn.