Power Pattern I: The Pinbar (Rejection)

The Pinbar is the single most powerful reversal signal in options trading. It screams "Rejection".

Anatomy of a Pinbar

A Pinbar has a very small body and a very long tail (wick).

• Bullish Pinbar: Long lower tail.
  Story: Sellers tried to push price down, but Buyers aggressively bought it back up.
• Bearish Pinbar: Long upper tail.
  Story: Buyers tried to push price up, but Sellers slammed it back down.

The "Trap" Strategy

Pinbars work best when they form at key levels like VWAP or Day's High/Low.

1. Wait for price to break support.
2. Wait for the candle to close.
3. If the candle leaves a long wick and closes back above support -> It's a Trap.
4. Enter the trade immediately with Stop Loss below the wick.

AlgoStraddle Insight: In options, if you see a Pinbar on the Spot Chart AND the Option Chart simultaneously, the probability of reversal is >80%.