Pinbar Reversal Strategy (Python)

Pinbars highlight sudden rejections of price and can signal short-term turning points. This strategy measures the length of the candle's tail relative to its body, looking for long shadows that stick out from recent price action. A moving average filter helps trade in the direction of the underlying trend. During each candle update the system calculates upper and lower shadows and compares them to the body size. A bullish pinbar with a long lower wick may trigger a long entry if price is above the moving average. Likewise a bearish pinbar with an extended upper tail can initiate a short position in a downtrend. Stops are placed a fixed percentage from entry. The trade is closed when an opposite pinbar appears against the open position or the protective stop is reached. Combining the pinbar logic with a trend filter improves reliability by avoiding countertrend setups.

• Entry Criteria: Pinbar with long tail and small opposite shadow, confirmed by trend.

• Long/Short: Both.

• Exit Criteria: Opposite pinbar or stop-loss.

• Stops: Yes, percentage based.

• Default Values:

• TailToBodyRatio = 2

• OppositeTailRatio = 0.5

• MAPeriod = 20

• CandleType = 15 minute

• StopLossPercent = 1 [*]Filters:

• Category: Pattern

• Direction: Both

• Indicators: Candlestick, MA

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural networks: No

• Divergence: No

• Risk level: Medium