Pin Bar/Inverted Hammer Candlestick Flashcards
What is a pin bar/Inverted Hammer candlestick?
A Pin bar or Inverted Hammer is a candlestick with a small body compared to its long tails.
What is the implication of the tail of the pin bar/Inverted Hammer candlestick?
The tail of the pin bar or Inverted Hammer shows the area of the rejected price, and the implication is that the price will continue to move opposite to the direction of the tail points.
How to trade a bullish-Pin Bar/Inverted Hammer in a bullish Trending Market?
The bullish pin bar or Inverted Hammer shows the rejection of lower prices (note the long lower tail).
The implication of the rejection reflects in the bullish-Pin Bar/Inverted Hammer is that the bulls will resume pushing prices higher.
How to trade bearish Pin Bars or Inverted Hammer candlesticks against the Trend?
When trading a bearish pin bar or Inverted Hammer candlestick counter to or against a dominant trend, it’s widely accepted that a trader should do so from a key chart level of support or resistance.
