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