đ What is a pin bar?
A pin bar is a single candle with a long wick and a small body at one end. The long wick shows that price pushed hard in one direction, then got rejected and closed back near where it started.
When that wick pokes past an old high or low, it is often a "liquidity grab": price runs the stop-losses sitting there, fills big orders, and turns. $ETH printed a clean one on Sep 24, and $BTC printed one on Sep 30 that later failed. Both are below.
đ Live chart in the cover and in the image post below.
đ How to spot it
âą Wick at least 2-3x the size of the body, and about 2/3 of the whole candle
âą Bullish pin: long LOWER wick, body near the top. Shows buyers rejected lower prices
âą Bearish pin: long UPPER wick, body near the bottom. Shows sellers rejected higher prices
âą Body color matters less than where it closes
âą Strongest when the wick sweeps an obvious old low or high, then closes back inside the range
đ§ Why wicks happen: liquidity
âą Many traders put stops just under a clear low or just over a clear high
âą Big players need that liquidity to fill large orders
âą Price spikes through the level, triggers the stops, then snaps back
âą The wick is the footprint of that stop hunt
đ How traders use it
âą Entry: after the pin candle closes, or on a pullback into the middle of the wick
âą Stop-loss: just past the wick tip. If price goes there again, the idea is wrong
âą Target: the next support or resistance, aiming for at least 2x the risk
âą Use 4H or daily candles. Pins on 1m-5m charts are mostly noise
đ§Ș Live example 1: $ETH bullish pin (daily, Sep 24, 2026)
âą Sep 23 low was $2,635. Plenty of stops sat just below it
âą Sep 24: open $2,684.70, wick down to $2,600.15, close $2,688.05
âą The wick was about 25x the body and 80% of the candle. It swept the Sep 23 low by $35, then closed above the open
âą Sep 28 printed a second pin: low $2,635.69, close $2,688.71, almost no body
âą ETH held over $2,600 for 2 weeks and tagged $2,777 on Oct 2
đ§Ș Live example 2: $BTC bearish pin that FAILED (daily, Sep 30)
âą Wick up to $85,649.95, over the Sep 25 and Sep 27 highs, close $83,623.60 (body only ~$40)
âą It looked perfect. But Oct 2 broke above the wick to $87,220, and Oct 4 closed at $86,530
âą A stop just above $85,650 kept the loss near 2.4%. Without it, the trade kept bleeding
đ§Ș Where they are now (Oct 10)
âą ETH about $2,510, daily RSI 41.6. It sits right on the 50 EMA (~$2,502), with the 20 EMA ~$2,608 above
âą ETH's Oct 7 low at $2,538 is now resistance. A wick above it that closes back under would be a bearish pin
âą BTC about $83,040, daily RSI 51.8, just under the 20 EMA (~$83,250)
âą No clean daily pin on BTC right now. Oct 8 dropped to $80,394, but its wick was shorter than its body
âą Watch for a wick under $80,394 that closes back above it. That would be a classic sweep of the October low
â ïž Common mistakes
âą Trading every long-wick candle, even in the middle of a range
âą Entering before the candle closes. A wick can turn into a full body in minutes
âą Stop too tight, inside the wick. The next sweep takes you out
âą Ignoring the bigger trend. A bullish pin in a strong downtrend often fails
â Quick checklist
âą Is the wick 2-3x the body?
âą Did it sweep an obvious high or low and close back inside?
âą Is it on the 4H or daily chart?
âą Is your stop past the wick tip, sized to 1-2% risk?
âą Is there room to the next level for at least 2R?
đŹ Have you been stopped out by a wick just before price reversed? đ
Not financial advice. DYOR.