The Pin Bar reversal is well known among traders, but it's often identified and traded incorrectly.
These are the 4 most common mistakes people make when trading the Pin Bar Reversal:
3. Trading Pin Bars that don't stick out from recent price action
Similar to mistake #2, it's essential that the tail of the Pin Bar sticks out from recent price action. If the market has recently traded in the zone that we now believe is being rejected, then it's less likely that the market will indeed reject the level.
Make sure that the Pin Bar sticks out from recent price action.
4. The wick is too small.
A Pin Bar should have a small body, and a large wick. The wick should be at least twice the length of the body, and the longer the better.