Interpretation: For a valid Bearish Pin Bar, price must move up forming a long pin at least twice the size of the head (distance between the close and open) and return to close at or lower than the high of the previous bar.
It is very easy to pinpoint those types of bars in a day’s session, sometimes though you may come across one of those after 2-3 days or more depending on the timeframe you are trading. However, it is a highly profitable method if you use it properly.
I personally use this system in a 4-hour chat (the bigger the timeframe better will be the signal).
Let’s open a chart and pick those bar formation.
From the above chart you will be able to see two different pin-bar formation, one bullish and the next one bearish. You may see that when bullish bar was formed, price rallied all the way up and when bearish bar was formed price moved in the opposite direction.
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