Pin Bar candlestick – How to identify and trade it in IQ Option

Pin Bar Candlestick - How to identify and trade it in IQ Option
Pin Bar Candlestick - How to identify and trade it in IQ Option

Indonesia Português Tiếng Việt

Pin Bar is one of the special candlestick patterns and is easy to identify. It gives signals to open a safe transaction and has a high winning rate. This article will describe in detail about Pin Bar candlestick. I also guide you to trade options with this candlestick pattern in IQ Option.

What is Pin Bar? Important features of Pin Bar candlestick

Pin Bar is seen as a form of candlestick shaped similar to a pin. It is easy to understand that the Pin Bar is a candle with a long tail and short body. The real body of the candlestick is tilted towards one side (top or bottom) of the candle.

What is Pin Bar?

Features of Pin Bar

Including 3 parts:

Candlestick tail (candlestick shadow) is very long. The length of the tail is proportional to the accuracy of Pin Bar pattern. Moreover, it makes a difference compared to other candlesticks.

Candlestick body is short, lying all the way to the top or bottom of the candle.

Candlestick nose is short or absent.

Pinbar includes 2 types

Bullish Pin Bar has the tail pointing down and the body pointing up.

Bearish Pin Bar has the tail pointing up and the body pointing down.

Pin Bar candlestick types
Pin Bar candlestick types

Why is Pin bar candlestick so important?

Pin bar candlestick is a signal of price action at a specific time. After opening, the price will move in a certain direction then reverse to the opposite direction.

Fast and decisive changes in a candle time period tell you exactly what the market wants. From there, you can predict the price in the future.

Differentiate Pin bar from Hammer or Shooting Star candlesticks

Visually, these candlesticks are the same. Bearish Pin Bar = Shooting Star. Bullish Pin Bar = Hammer. But in terms of meaning, Pin Bar is more complete.

Shooting Star and Hammer are two candlesticks that appear at the end of an uptrend. They are classified as a trend reversal candlestick pattern. Pin Bar is a single candlestick. Its appearance sometimes signals a continuation of the trend.

Differentiate Pin bar from Hammer or Shooting Star candlesticks

How to trade with Pin Bar candles in IQ Option

There are many ways to use Pin Bar to trade in IQ Option. And we will use Pin Bar as a signal candlestick.

The meaning of icons in the picture

The meaning of icons in the picture

Lamp icon is a signal to open a trade (option).

The green arrow icon is to open a Higher option when the signal has just ended.

The red arrow icon is to open a Lower option.

Technique 1: Trade with candlestick colors and Pin Bar in IQ Option

This is a reversal trade that bets on the color of the next candlestick (immediately after the signal Pin Bar). Green = HIGHER. Red = LOWER.

Requirements: Japanese 5-minute candlestick chart + Bollinger Bands indicator. The expiration time is 5 minutes. If you do not know how to trade IQ Option with candlestick colors, please read this article carefully. How to trade with candlestick colors in IQ Option platform.

Trading technique:

HIGHER (bet the next candlestick green) = Bullish Pin Bar candlestick is created outside the lower Band. Remember that the whole Pin Bar candlestick closes outside the Bollinger Bands completely.

Trade with candlestick colors and Pin Bar in IQ Option

Explanation: When the price moves out of the lower Bollinger Bands, it tends to reverse and bounce back. Combine with a bullish candlestick (Bullish Pin Bar) => The probability that a next green candlestick will appear is high.

LOWER (bet the next candlestick red) = Bearish Pin Bar candlestick is created outside the upper Band.

Trade with candlestick colors and Pin Bar in IQ Option

Explanation: When the price goes above the upper Bollinger Bands, it tends to reverse. Combine with a bearish candlestick (Bearish Pin Bar) => buy a Lower option, which bet on the next red candlestick.

Technique 2: Trading with Pin Bar candlestick and trend

This is a technique that has a high winning rate. Because it gives the best entry point. Identify price trend > Find signal entry points (Pin Bar).

Requirements: Japanese 5-minute candlestick pattern + SMA30 indicator. The expiration time is 15 minutes or more.

Trading technique:

HIGHER = Uptrend + SMA30 + Bullish Pin Bar

Explain: when the market is in an uptrend, the price is above SMA30. If it touches SMA30 indicator and creates a Pin Bar => The probability that it continues to increase is high. Open a HIGHER option.

Trading with Pin Bar candlestick and trend

LOWER = Downtrend + SMA30 + Bearish Pin Bar

Trading with Pin Bar candlestick and trend
Trading with Pin Bar candlestick and trend

Explain: when the market is in a downtrend, the price is below SMA30. If it touches SMA30 indicator and creates a Pin Bar => The probability that it will fall back to continue the downtrend is high => Buy a LOWER option.

Technique 3: Trade as a reversal candlestick pattern

Pin Bar is similar to Shooting Star and Hammer candlestick pattern. You can open reversal trades when Pin Bar appears. See more in the below articles.

How to trade with Hammer candlestick in IQ Option

How to identify and trade with Shooting Star candlestick in IQ Option

Pin Bar candlestick in combination with Support level

A clip of Pin Bar in IQ Option

Conclusion

Once you have read this article, you can open IQ Option app or website and practice Pin Bar identification. Especially, you should focus on the case of candlesticks created outside the Bollinger Bands or appearing in specific trends.

I will have more posts on this special Pin Bar candlestick pattern. Price action strategies are built around Pin Bar candlestick.

Thank you for reading this article. Please register for an IQ Option Demo account below to practice trading for at least 2 weeks before thinking of making money in this market.

Indonesia Português Tiếng Việt

Pin Bar candlestick – How to identify and trade it in IQ Option
4.6 (92%) 74 reviews

1 COMMENT

  1. This special candle represents a sharp price reversal or rejection and often appears along a trend. Therefore, you should expect to find bullish and bearish pin bar candles on your chart. In addition, pin bars are only useful for trading when markets are trending. This indicates that buyers are trying to push prices higher. However, the sellers jumped in and drove the prices lower. Once the pin bar is completely developed, you should enter a sell position.

LEAVE A REPLY

Please enter your comment!
Please enter your name here