Pin bar is one more type of candlesticks with a very powerful meaning.
When it occurs, either in an uptrend or in a downtrend, it has reversal character.
It represents the weakness of the current trend and gives a sign of a potential reversal.
The reason we changed candlestick color to grey is quite simple because it doesn’t matter.
Two most important things are the shape and the position of pin bar.
If it has tail above its body and form in an uptrend, it has bearish character.
If it has tail below its body and forms in a downtrend, it has bullish meaning.
The story behind the candlestick is straightforward.
The price tried to go with the trend but it found some obstacle and got rejected by.
It shows the weakness of the trend and gives us a sign of a potential reversal in the direction.
Bullish pin bar is also known as a hammer.
On the other side, a bearish pin bar is called an inverted hammer.
It is not important to remember the names.
What is crucial for you is to learn to spot these candlesticks and to utilize their meaning into making profitable trading decisions.
We are mentioning the names in case you come across sometimes; you will know those names are related to.
Milos is an independent trader, with a background in journalism and publishing. Nomadic by nature, he’s lived in four different countries this decade. He’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives. Milos got into Bitcoin while completing his degree and hasn’t looked back since, writing about anything crypto-related. He is the co-founder of the Cryptoaims and he has a strong passion to educate people about this revolutionary technology.