Pin bar (hammer and shooting star)
A long wick shows price was pushed away and rejected. It is a rejection signal at a level.
What it is
A pin bar has a small body and one long wick (at least two to three times the body). A hammer (long lower wick) at support shows sellers pushed price down and buyers rejected it. A shooting star (long upper wick) at resistance shows the opposite.
The wick marks the level where the market said no. A stop beyond the wick has a clear logic: if that rejection fails, the idea is wrong.
How to use it
- Look for the pin bar at a prior level or zone.
- Let the candle close; the close should be in the upper part of its range for a hammer.
- Enter on a break of the candle’s high, or a limit near the 50% of the wick.
- Stop beyond the tip of the wick; first target at the next level.
Common mistakes
- Entering before the close, when the wick is still growing.
- Taking pin bars in the middle of a range.
- Setting the stop inside the wick.
Practise it in TradeDesk X
Wicks that sweep a level and close back are drawn as Sweep markers on the TradeDesk X chart (Flow layer). The Micro “sweep + reclaim” setup is a pin bar plus order-flow confirmation.
Related lessons
Liquidity sweeps (stop hunts)
Price often runs beyond obvious highs and lows to trigger stops, then reverses.
🕯Engulfing candle
A candle whose body fully covers the previous one signals a sudden change of control.