Forex glossary
Pin Bar (Pinocchio Bar)
A pin bar is a candle with a small body near one end of its range and a dominant shadow at the other. There is no single universal threshold set; rules often require a shadow two to three times the body. It describes a return from an extreme without guaranteeing reversal.
Illustrative example
How does it work in practice?
Assume open 100, close 101, low 96 and high 101.2. The lower shadow is four units against a one-unit body; a rule requiring at least three times body length classifies this candle as a pin bar.
A case to work through
A three-times threshold
Hypothetically, O=30, C=32, L=25 and H=32.2; the rule requires a lower shadow at least 3× the body.
- Body=2 and lower shadow=5, giving a ratio of 2.5.
- The long shadow fails the required ratio of 3 despite its visual prominence.
What follows? Reject this condition under the specified rule.
Example boundary: There is no universal threshold set; check other geometry conditions separately.
A useful distinction
Pin Bar (Pinocchio Bar) / Hammer
Pin bar is a broader geometric label; hammer also requires the classic context after a decline.
Check your understanding
Check a specified shadow-to-body ratio.
Show the answer and explanation
4
Divide the dominant shadow by the body: 6 / 1.5 = 4. This ratio describes bar geometry, not a chance of winning.
Bodies, shadows and context
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Read the fuller explanation
Sources and documentation
- TA-Lib – ta_CDLHAMMER
Original OHLC body/shadow detection code and configurable candle thresholds; implementation is not effectiveness evidence.
Document read: - TA-Lib – ta_CDLSHOOTINGSTAR
Original OHLC body/shadow detection code and configurable candle thresholds; implementation is not effectiveness evidence.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.