Pin bar
A long-tailed rejection candle whose meaning depends on location and follow-through.
What to look for
- One wick is materially longer than the body
- The close returns toward the opposite end of the range
- The bar forms at a predeclared structural area
The highlighted candle trades below an area marked in advance, then closes back near its high. Set the wick-to-body and close-location rules before you reveal the next candle.
For the bearish version, look for a long upper wick and a close back near the low at an area marked in advance. Use the same ratios and timing rules.When the pattern is confirmed
Define whether confirmation requires the close itself, a break of the bar, or the next close.
Where the idea is wrong
Usually beyond the rejected extreme, with any volatility buffer specified in advance.
The easy mistake
Small bodies appear frequently; without location and regime filters the label selects noise.
A complete pin bar example
Look for the candle at support, resistance, a range edge or the end of a pullback that was marked before the bar formed. A similar candle in the middle of open space is a useful counterexample.
First rule to test
Break entry — act only if a later price trades beyond the pin bar high for a bullish example or below its low for a bearish example.
Alternative rule
Close confirmation — wait for the next candle to close beyond the pin bar body in the rejection direction, then use the following bar as the earliest entry.
Place it where the pattern is wrong
Place the example stop one tested ATR fraction beyond the rejected wick extreme; calculate that buffer from the signal candle and keep it unchanged throughout the test.
Context, trigger and risk
The pattern handles timing. The other tools decide whether the location makes sense and how far normal price movement can reach.
Separates a meaningful rejection area from an isolated long wick.
Defines a consistent minimum candle size and stop buffer.
Provides levels that existed before the rejection candle appeared.
First exit to test
Fixed-R comparison — close the whole example at a preselected multiple of the original stop distance.
Alternative exit
Structure target — close at the next swing level or the opposite side of the range that was visible at entry.
Patterns need a method around them
Open a related strategy to see the wider market filter, entry, stop, exit and no-trade rule.
Support and resistance rejection
A framework for testing reactions at levels that genuinely predate the trade.
- ENTRY
- Enter at the next H1 open after the first qualifying rejection close back above the prior-day low or below the prior-day high.
- STOP
- Place stop 0.20 × ATR beyond the rejection candle extreme. Risk 0.50% of equity and round down to 0.01 lot.
- EXIT
- Take profit at 2R. Exit after 12 completed H1 bars if neither stop nor target trades.
Range mean reversion
Tests whether qualified boundary excursions revert toward a range midpoint.
- ENTRY
- Enter at the next H1 open after the first qualifying close back inside the frozen range.
- STOP
- Place the stop 0.20 × ATR(14) beyond the excursion extreme and size to 0.50% equity risk, rounded down to 0.01 lot.
- EXIT
- Exit at the frozen range midpoint. If neither stop nor midpoint trades, exit after eight completed H1 bars.
Trend pullback
Research whether shallow retracements inside an objective trend resume in its direction.
- ENTRY
- After eligibility is true, place a market order at the next H1 open when the signal candle closes beyond the highest high of the previous two pullback bars for a long, or below their lowest low for a short.
- STOP
- Place the stop 0.25 × ATR(14) beyond the pullback extreme. Size so entry-to-stop risk equals 0.50% of demo equity, rounded down to 0.01 lot; never widen the stop.
- EXIT
- Place a fixed target at 2R immediately after entry. If neither stop nor target trades first, exit at market after 24 completed H1 bars.
Try it on older charts
Encode wick-to-body and close-location ratios, then compare structural and random locations.