The pin bar price action reversal pattern shows that the particular price level was rejected. The indicated bars are a good representation of a pin bar formation. As you already should be aware that although we have all this information, the market still may not obey the rules we set, so at the red highlighted candle, it wasnt a succesful pinbar.
Here is how you spot / identify a pinbar :
Short Nose
Small Body than the entire candle
Long Tail/Shadow/Wick
The lengthy tail should be showing you the rejected price action direction, meaning your next action will be the opposite of the direction of the lengthy tail.
Here is how you spot / identify a pinbar :
Short Nose
Small Body than the entire candle
Long Tail/Shadow/Wick
The lengthy tail should be showing you the rejected price action direction, meaning your next action will be the opposite of the direction of the lengthy tail.