Pin bar and inside bar: two price action setups explained
Pin bars and inside bars are two of the simplest price action setups. A pin bar shows rejection of a price level; an inside bar shows a pause before the next move. Both only matter at a meaningful level.
By the TradeFather education team · Updated 27 Oct 2026 · Educational content, not financial advice
- Pin bar: long wick, small body — price was pushed away from a level.
- Inside bar: a candle fully inside the previous candle's range — the market is compressing.
- Location matters more than the candle: trade them at support, resistance or the trend.
- Higher timeframes (4-hour, daily) produce cleaner signals.
The pin bar
A bullish pin bar has a long lower wick (about two-thirds of the candle or more) and closes near its high, showing sellers pushed price down but buyers rejected it. It is the same shape as a hammer; a bearish pin bar resembles a shooting star.
Entry ideas: above the pin bar's high, or on a retrace into the wick. Stop: beyond the wick tip. Target: the next support or resistance level.
The inside bar
The first, larger candle is the 'mother bar'. The inside bar's high and low sit within it. In a trend, traders watch for a break of the mother bar in the trend's direction.
Entry ideas: a close beyond the mother bar's high (uptrend) or low (downtrend). Stop: the opposite side of the mother bar, or of the inside bar for a tighter stop. False breaks are common, so a candle close helps.
Pin bar vs inside bar
| Pin bar | Inside bar | |
|---|---|---|
| What it shows | Rejection of a level | Pause / compression |
| Best context | At support or resistance | In a clear trend |
| Typical use | Reversal or pullback entry | Continuation breakout |
| Main risk | Level breaks anyway | False breakout |
Risk notice
Forex and CFD trading is high risk. Leverage magnifies losses as well as gains, and regulated brokers' own disclosures typically show that most retail CFD accounts lose money. Never trade money you cannot afford to lose. TradeFather is an independent education and tools provider — not a broker or financial adviser — and does not provide forex signals or execute trades.
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Frequently asked questions
+Is a pin bar the same as a hammer?
A bullish pin bar and a hammer have the same shape. 'Pin bar' is price-action language; the bearish version resembles a shooting star.
+Which timeframe is best for these setups?
4-hour and daily charts give the clearest signals. On very low timeframes they appear constantly and mean little.
+Do these setups work alone?
They work best combined with a level, the trend and a fixed risk plan.
Sources and further reading
Official and primary sources, links checked 27 Oct 2026. Rules, schedules and broker terms change — always confirm on the source.