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Trading Strategies

What Is the Pin Bar Strategy

The pin bar strategy is built on a candle with a small body and a long tail, read against a level the chart already had: the tail crosses the level and the close comes back on the other side. This paper shows you gold's 12 February 2025 pin bar from a real bar, its tail 33.83 against a body of 5.60 through the day-before low; the idea as a sewing pin through a ribbon; the shape on the daily chart; the same shape on two days with the day that followed each; and the two ways your platform draws the same bar.

Difficulty
Intermediate
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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A tail through a level

The pin bar strategy is built on one candle read against one level. A pin bar is a candle with a small body at one end and a long tail — a wick — at the other. Take gold on 12 February 2025. The day ran from 2864.07 to 2909.20, a 45-dollar range, and the body — the open at 2897.90 to the close at 2903.50 — was 5.60 of that. The tail below the body was 33.83, three-quarters of the day. The level is the low of the day before, 2881.66. The tail went 17.59 below it and the close came back 21.84 above it. That pair — through the level, and back — is what the strategy waits for.

A sewing pin through a ribbon

Picture a sewing pin pushed through a ribbon. The head is the candle's body, small and at the top. The shaft is the tail, and the point is where the price reached and left. The ribbon is the level. The whole of the strategy is in the ribbon: a pin through the air is only a candle with a long wick, and there are many of those. The strategy reads the tail against a level the chart already had — a recent low, a recent high, a line drawn days before — and the shape counts when the tail went through the level and the close came back on the other side of it.

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