I understood (without googling it) that a pin bar was a potential reversal candle, with a long wick appearing at the end of a trending move, often at either support or resistance. A bearish candle would have made a higher high, but opened and closed inside the previous candle. Well, we seem to have most of those features here. Do we have a pullback, probably not... it's the Dax :-/
I would say its not a pin bar..... firstly the nose is too long yes there's strong sell pressure as seen the long wick, but after the sellers drove price back down from resistance forming the wick, buyers were still able push back a bit and stop the candle closing very near the low - causing the nose - for the pin bar to be valid, there should be so much sell pressure that the buyers can do nothing to stop it and no matter how hard they try, buyers cannot stop the sellers from closing the candle near the low.... a very small nose is acceptable but this bar is Pinocchio - its got a long nose and it lies. furthermore when the bull entry candle closed, the next candle - the pin bar - pulled back a little first back into the body of the entry candle, before driving into resistance - so no urgency on that final move in. These things are rarely 100% perfect, but this one has too many problems for a pinbar.... may still transpire on a higher timeframe or form a strong engulfing signal?
ShoaibGanai
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Hey man, im a rookie in trading. I have heard and trued to understand on the workings of trading with a strategy. I have a simple and logical strategy, buy low sell high. And due to experience i dont feel like im ready to do shorts, i tend to stay away from it, even when i predict it. Is it possible we could connect and you could enlighten me, i am struggling with predicting the right trend movements? I would be grateful for your response :)
dravya
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Which successful trader trades candle patterns? They keep on forming all time, of no significance; market structure is paramount.
@dravya, I don't believe in candlestick patterns either as a definitive textbook trading strategy. But every candle tells a story, and the pin bar just reveals that buyers have defeated sellers or vice versa. That by itself is no reason to trade it. But if the context is right.... for example... at a trendline or another area of support/resistance line then it gives us confirmation
dravya
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@reach4thelasers, absolutely right, but here in this chart, I can't see any resistance level. Thanks.