​​#education As promised last week, today we’re going to cont | OctaFX Official

​​#education

As promised last week, today we’re going to continue our talk on Price Action.

The most well-known Price Action pattern is Pin Bar.

This pattern is a formation that occurs before a local trend change.
The Pin Bar candlestick pattern can signal the beginning of a trend change, even before trend indicators were able to detect it.
Therefore, the Pin Bar is a reversal pattern consisting of two candlesticks.

The upper or the lower candlestick (based on bullish or bearish trend direction) is called a reversal candlestick, has a small body, a long shadow on one side and a small shadow on the other. The first candlestick (usually on the left) can be of any kind. The long shadow of the reversal candlestick goes towards the initial trend direction, and the candlestick body is located between the highest and lowest levels of the first candle.

Note that the high/low of the reversal candlestick coincides with the local high/low on the chart.