One of the common and most profitable candlestick patterns is the PIN-BAR candlestick. The pinbar is short for Pinocchio bar, name after Pinocchio’s nose. A pin bar is characterized by an elongated wick that ‘sticks out’ from price action. Either on an uptrend or downtrend. The pinbar is one of the easiest candlesticks pattern to spot on the chart, hence it can be traded by newbies and expert traders alike.
How are pinbars traded? Pinbar is majorly traded as a reversal signal. Once spotted on the bottom of the chart, it could trigger a reversal up. The elongated downward wick gives a clear indication that the buyers have gain momentum and have recovered from the sellers taking the price down in that trading session. This recovery is evident in the formation of a bullish candle in the next trading session. This is also applicable when the pinbar is seen on an uptrend.
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