Pin bar candlesticks are actually quite interesting in technical analysis. The high or low points of this candlestick pattern often reveal traces of large funds manipulating the market—when they are looking for stop-loss points or testing the market bottom, they leave these distinctive lines on the chart. This is not a coincidence but a true reflection of the market's microstructure.

So, what are these traces useful for? They are essentially key levels of strong support and resistance. The problem is, simply identifying these levels is not enough. Many people see a pin bar and jump in, only to get caught in a bad position. The key difference lies in whether you use higher timeframes. For example, on a 4-hour chart, drawing horizontal lines at the extreme points of long-tailed pin bars is the first step. The second step is crucial—waiting for engulfing patterns or hammer candles to appear again on lower timeframes like the hourly or 15-minute charts, then trading in the direction of the main trend. This approach can significantly improve win rates.

How exactly to operate? First, scroll through historical data to find pin bars with particularly clear patterns, and mark key levels at their tails. Then, use these levels for trend trading. It may seem simple, but the real secret lies in the footprints of market makers hidden within these patterns. However, don’t rush to trade live; at minimum, backtest over 100 times on historical data to understand the patterns of opening and closing prices. Professional traders essentially rely on these two data points to judge all timeframes. It may look simple, but behind it are years of backtesting experience.