Pin Bar Rejection at Support and Resistance

Lower tail. The long lower tail shows rejection of lower prices.

Beginner · 7 min read

A long-tailed candle at a key level is one of the simplest and most popular price action setups.

What it is

A pin bar has a long tail pointing to the rejected price and a small body at the other end. At support, a bullish pin bar has a long lower tail.

It shows that price tried to go beyond a level and was pushed back. The longer the tail compared with recent candles, the stronger the rejection.

It is a setup, not a signal: you need the level and the trend context.

Mark a clear support or resistance level.
Look for a candle with a tail at least twice its body, poking through the level and closing back above (for support).
Prefer pin bars that stand out from neighbouring candles.
Confirm the higher timeframe trend agrees.

Entry: On a break of the pin bar high (long) or a limit order near the tail midpoint.
Stop loss: Beyond the tail.
Target: The next level or at least 2R.

Wrong: Trading pin bars in the middle of a range. Right: Only at levels or trend pullbacks.
Wrong: Using a stop inside the tail. Right: Put the stop beyond the tail.

Pro tip: A pin bar that forms after a liquidity sweep of a clear low is often higher quality.

A bullish pin bar has a long: Answer: Lower tail. The long lower tail shows rejection of lower prices.
Where is the stop? Answer: Beyond the tail. A break of the tail invalidates it.
Pin bars work best: Answer: At key levels or trend pullbacks. Context is key.

Educational content, not financial advice. Diagrams are illustrations, not real market data.