The candlestick trading bible

84
THE CANDLESTICK TRADING BIBLE 
-The pin bar formed in line with the direction of the market is more 
powerful than the one which is formed against the trend. 
- If you can identify a clear trend that means that you know who is in 
control of the market.
The formation of this candlestick pattern with the trend makes it so 
effective. See the chart below: 

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85
THE CANDLESTICK TRADING BIBLE 
As you can see in the chart above, bullish pin bars that were formed in 
line with the uptrend work, and they should be taken into 
consideration.
But the bearish ones that were formed against the trend should be 
ignored. 
-The anatomy of a pin bar is important as well, you have to make sure 
that the candlestick is a pin bar by looking at the distance between the 
real body and the tail.
Pin bars with longer tails are more powerful.
The Psychology behind the pin bar candle formation: 
Pin bars are formed when prices are rejected, this rejection doesn’t 
indicate a reversal signal, because this price action setup can form 
everywhere in your chart.
The most important areas to watch when trading pin bars are major 
key levels such as: support and resistance, supply and demand zones, 
and moving averages. 
The formation of this candlestick chart pattern in these levels give a 
clear idea about what happens in the market. 
If the rejection was near a support level for example, this is an obvious 
indication that the bulls are more powerful, and they are willing to 
push the market to go upward. 
See the chart below: 

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86
THE CANDLESTICK TRADING BIBLE 
If the formation of this candlestick occurs near a resistance level, it 
indicates that the bears reject prices, and prevent the bulls from 
breaking this level. So, this means that sellers are willing to push the 
market downward. See the chart below: 

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