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Tailed Bar Candlestick Trading Strategies

Pin-Bar-Trading-Strategy

What is meant by tailed bars?
To explain it in a simple way they are the most important bars on a price chart because they often give us a very strong idea of ​​what the price can do next. You will find a more detailed description further down in the text.

Therefore, you will find below a summary of six really good tailed-bar candlestick patterns. Patterns that are very effective to use when analyzing the charts and acting on a regular basis. We want to give you the knowledge of how these patterns look, how to identify them and their meaning. It’s a perfect introduction if you’re new to different tailed candle strategies, but even for a trained trader can they be an excellent refreshment.

In order to understand the text below, you need to know the basics of candle-pie charts and candlesticks. If you do not know enough about it, you can read more here.

Now to my first mention question above: What is meant by tailed bars?

The “Tailed bars” range between opening and closing rates. So, simply described a bar with a tail that is noticeably longer than the body or the actual body.

The tails of price bars (also known as shadows or wicks) are important to interpret what they are showing and what they mean. They show the descent on a level or the price range, either a small, medium or large reversal that happened quite quickly.
What does this mean then? That there was fatigue in the area where the tail was formed, which has major consequences. When we see that an area price is exhausted it is extremely important to note it down. The tail gives us a clear indication that the buyer would really buy or that the seller would really like to sell and the only change we care about here is the what and the how.

A tail on a bar means that the price MIG can move in the opposite direction, and soon. So you can sincerely base an entire trading strategy around tailed bars because this is obviously a big part of the data an action trader needs. Making daily chart tailed bars is one of the most important bars and as a result, daily charts lists are the most important bars for everyone. So be sure to follow the daily charts as they are of great importance. You will be able to gather a tremendous amount of information from simple tailed bars, which we will go over shortly.

Examples of tailed bar candlestick patterns:

The Classic Pin Bar Candlestick Pattern
Pin Bar Candlestick is a tailed bar that shows a strong return in price over the time period of the chart. So, under the daily daily allowance, a sharp price fluctuation occurs, while a 1-hour button bar shows a price increase over a 1-hour period. The importance of this is determined by the timeframe, the higher the timeframe, the more “importance”.

The pin bar usually has a much longer tail than the body, the body is the distance between open and closed. However, the tail should be at least 2/3 the length of the total bar, preferably actually 3/4. There may also be a small body or nothing (see picture below). different nice buttons with the same meaning:
A reverse price has occurred, represented by long tail. The implication is that the price can move in the other direction, opposite the tail …

tailedbarpinbar

A real-world example of the classic pin bar candlestick pattern:

classicpinbarchart

 

The Long-tailed Pin Bar Candlestick Pattern

It is a staple with an unusually long tail on and absolutely the most important bars in all trade, however, they are very rare. When you see this pattern then stop marking because it is a big indicator that the price will turn in a different direction. So, to make it clear: the long tailed pin indicates major trend changes as well as often major directional changes.

The Long-tailed Pin Bar har vanligtvis en mindre riktig kropp än en den klassiska. De är därför lätta att upptäcka eftersom svansarna är nästintill omöjliga att missa. De är ibland bra kandidater för att komma in på en 50% retrace per min trade entry trick strategi. Nedan kommer exempel på bra snygga Long-tailed Pin bars:
Bullish = a potential buy signal
Bearish = a potential sell signal

long-tailedpinbars

A real-world example of a long-tailed pin bar candlestick pattern:

longtailedpinbar

 

longtailedpinbar

 

Double Pin Bar Candlestick Pattern

Det är inte ovanligt att se på varandra följande stavformar på en marknad. Särsklit vid nyckelkortsstöd och motståndsnivåer, eftersom marknaden då testar dessa områden för att se vilken part som ska vinna mellan köpare och säljare. Du ser då oftast två stiftstänger bakåt eller dubbla stiftstänger. Det är väldigt sällsynt med tre i rad men det har setts till. En dubbeltrappa sänder ofta ett viktigt meddelande inom rätt marknadssammanhang och med sammanflöde kan de vara en uppenbar varningssignal om att priset ska stiga i andra riktningen. Exempel nedan hur det ser ut:

doublepintailedbars

A real-world example of a double pin bars:

(You may notice that the price barely violated the decline in the double-stitched image. Because of this, they are important to understand the stop loss location correctly. The correct stop loss (one big enough) would have helped you stop before trading continued to be a big winner.)

doublepinbarchart

 

 Long tailed bars and Small tailed bars

In the following diagram you can see what is meant when the reference goes to “tailed bars”. These are bars with significant tails but it is not perfect enough to be considered a “pin bar”. As said, tails are often important!
You must look at a tailed bar and see a potential impact on the short-term market direction, even if they are not perfect pinbar signals.

tailedbars

 

Below is a pretty classic tailed bar. But this was a “bullish tailed bar” and was formed at a support level within an overall up-trend market. We can see that this leads to a much stronger pressure. But note that there was not a bullish pin bar (the lower tail was not long enough in relation to the body and its upper tail was a bit too long). Despite this, the lower tail was long enough to classify as “bullish tailed bar” …

tailedbarlong

The next picture shows the differences between a tall and small tailed bar as well as classic pin bar patterns.

tailedbarslongandshort

Other tailed bar candlestick patterns

There is a large variety of different tailed bar patterns that we will surely also will write about in other articles. At the moment we will briefly look at some of the most common rods.

Below you will see a pin bar inside the bar’s combination pattern, this is an inner bar pattern that is formed after a pin and within the structure of the pin.

Second you see a  inside-pin bar pattern, (do not be confused) this is where you have a pin that is also an inside bar, so it’s an inside bar pattern where the inner field is a pin, essentially treated like an inside bar pattern with a little extra “weight” because you have the pole as an extra flow.

Finally, we have a fakey pin bar combo setup where the fakey or false-break section of the fakey pattern is also a pin bar.

othertailedbars

 

One other example that comes below shows a real copy of a bearish pin bar inside a bar combo pattern. The implication leads to a major decline. Also note the bearish tailed bar that followed: another good selling signal in a downward trend.

pinbarinsidebarcombo

Next, a real-world example of an inside-pin bar combo candlestick pattern:

insidepinbarcombo

And to the last example picutre: a real-world example of a fakey-pin bar combo candlestick pattern

fakeypinbarcombo

 

Now the Conclusion
Now you have read a brief introduction to these different patterns, which should have taught you enough to start identifying them on the charts. A good start is to practicing them on a demo account.

As you try and begin to understand more and more, you can go deeper how to get more into business using these patterns. You can effectively learn and understand. At some point you will read the tables from left to right, just like reading a book, which is an important element in profitable trading. You are already on your way to great new skills!