【Today's Knowledge】Shape——Pin Bar K-Line

🔹1. The Role of Pin Bar K-Line

（1）The pin bar is a type of candlestick pattern characterized by a long upper or lower shadow, representing price rejection at support or resistance levels during trading.

（2）In technical analysis, the pin bar is one of the most powerful and effective K-line patterns. It can signal reversals, but the pin bar also has many other uses in technical analysis, such as drawing resistance reversal lines.

🔹2. What is a Pin Bar K-Line?

（1）A pin bar K-line consists of a small body and long shadows. An upward extending long shadow indicates that the price is resisted at a certain resistance level. A downward extending long shadow confirms that the price is resisted at a certain support level. Additionally, there are shorter shadows below the bearish candle and above the bullish candle.

（2）To determine if a pin bar candlestick is valid, two conditions must be met:

a. The body of the pin bar K-line must be less than 20% of the total length of the K-line.

b. The tail or wick length of the candle must be greater than 80%.

🔹3. What is Price Rejection?

（1）Price reversals often indicate that the market will experience a false reversal, attempting to entice retail investors to trigger stop-loss orders.

（2）Large banks and institutional investors often exploit this false reversal to eliminate retail investors and prevent the emergence of new trends.

（3）Therefore, price reversals help us accurately grasp key reversal points.