📊 Price Action · Reversal candle
Pin bar reversal
A pin bar has a small body and a long wick rejecting a level. Bullish pin at support = long signal; bearish pin at resistance = short signal. Stop beyond the wick; target the next S/R.
Setup
- Chart: 1-hour or daily candles
- A pin bar has: (1) small body (< 30% of total range), (2) long wick (≥ 2× body), (3) close near the opposite end of the wick
- The pin must occur AT a meaningful level — support, resistance, prior high/low, or moving average — not mid-range
Entry
Long: bullish pin bar (long lower wick, small body near top) at support. Enter on the next candle's open. Short: mirror — bearish pin at resistance.
Exit
First target: 1× the wick length. Extended target: the next S/R level.
Stop-loss
A few ticks beyond the wick (below the low of a bullish pin, above the high of a bearish pin).
When it works
- Pin bar occurs at a well-defined level with prior touch history
- Wick is clearly disproportionate (2-3× body)
- Followed by a candle that opens in the pin's direction and holds
When it fails
- Pin bar mid-range with no S/R context
- Wick is only marginally larger than the body — weak rejection
- Immediately reversed by the next candle taking out the pin's extreme
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.