#1 Quick Guide on Identifying Pin Bar Candlestick on Binomo


There are many types of candles you will come across while trading on the Binomo platform. It is a good idea to get to know them as they can simplify your work. They create specific patterns that will help you to discover the best trade entry points.

Pin bar candles characteristic

The candles that are called pin bars are characterized by an extremely small body and a long shadow on one side. On the other end, there may be a short wick or no wick at all. The long shadow may point upwards or downwards and it depends on price fluctuationsOpens in a new tab. on the market.

The shape of a pin bar
The shape of a pin bar

How to read pin bars on Binomo

Pin bars develop at the top of an uptrend or at the bottom of a downtrend. Their appearance forecast a change in a trend’s direction.

During an uptrend, the pin bar on the top will have a long wick pointed up. It is called a bearish pin bar. The trend might soon reverse and move downwards.

During a downtrend, the long shadow of the pin bar is pointed down. This pin bar is known as a bullish one. A consequent uptrend is imminent.

Bearish and bullish pin bars
Bearish and bullish pin bars

A perfect pin bar

There is a kind of pin bar that is considered to be perfect in the traders’ world. To assume a pin bar is ideal there are two conditions that must be met.

  • The opening and closing of a pin bar must be located near the bottom or the top of the previous bar.
  • The opening and closing of a pin bar must be contained within the length of the previous candle that is sometimes called the left eye.

The appearance of an ideal candle is regarded as the perfect moment to open a transaction. It should be a sell position when you spot a bearish pin bar and a buy trade when you detect a bullish pin bar during a downtrend.

Ideal pin bar pattern
The ideal pin bar pattern

Conclusion

Candlestick patterns are very helpful in recognizing entry points for your trades. Pin bars are a special candle type that gives you information about a trend reversal. The signal produced by the ideal pin bar is incredibly powerful.

Remember, there is a demo account on the Binomo platform. There you can practice trading based on signals received from pin bars.

Share your experience with us in the comments section below.

Best of luck!

 

 

 

Bart Bregman

Fulltime Day trading, and help Binomo wiki in my spear time to build an awesome platform to help beginners out there. #digital nomad, traveling all over the world.

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