There is a lot of debate about Pin bar vs Hammer, which is the best for trading analysis.
Some traders swear by pin bars as a better tool to trade.
Others prefer the hammer candlestick pattern
In this article, we’ll go through both patterns so you can learn which is better, pin bar vs hammer.
Pin bar Vs Hammer – What’s The Difference?
The Pin bar and Hammer Candlestick Pattern are both exactly the same. However, the Hammer pattern is a bullish candlestick pattern that indicates a reversal in trend. The Pin bar version of this is just called a Bullish Pin Bar.
Likewise, the pin bar is also called the same for a shooting star when they are found at the top of a bullish trend.
Thus creating a bearish pin bar.
The key thing to remember is that they BOTH indicate trend reversals.
The only difference between these patterns is their names.
They both have the same structure of a narrow body and a long wick created by the low.
You trade them in the exact same manner.
So there is truly no difference between the pin bar vs hammer.
Why Do Traders Choose Pin bar vs Hammer?
Quite simply, it shows how a trader was taught these patterns.
Traditional traders and veterans would call them a Hammer candlestick pattern.
“New age” traders over the past 5 years would call them pin bars.
But to be honest it doesn’t matter.
Pin bars give a nice visual image to them when spoken out loud.
In addition, traders will speak about pin bars to keep things simple.
Unlike having to remember the different names like Hammer and Shooting Star candlestick pattern – you just need to remember a single name.
Then add whether it is bullish or bearish.
Much more simple.
Should I Trade The Pin Bar/Hammer Pattern?
Candlestick patterns are one of the most powerful trading tools that every trader should know about.
These candlesticks can be used as a timing tool and can predict price reversals.
Many traders use these candlestick patterns to time trades.
These are incredible trading indicators that every trader should follow and recognise.
The Pin Bar is a powerful signal of a price reversal in any trading strategy.
When the pin bar is bullish it highlights that there has been a strong loss of downward momentum, and a potential reversal to the upside could be considered.
This is important data because at the end of the day, if the bears are losing momentum then it creates less friction for the bulls.
Thus creating a potential trend reversal.
It helps you anticipate price reversals in a currency pair and helps you find opportunities for short-term profit.
Now, don’t go into these setups thinking it will always work out.
Like all candlestick patterns, pin bars can fail too.
The main thing to take away from this is to be aware of them, and watch for them so that you know when to get in or out of a trade.
If you are a new trader, there are a number of ways to start learning about the different strategies and trading techniques used today.
But don’t worry because you are not alone in your journey to becoming a successful and profitable trader.
There are plenty of online resources available that can help you with your new trading journey.
In my opinion, one of the most important things to do when beginning a Forex trading career is to learn as much as possible, both on paper and through real-life experience.
While learning about the technical analysis can help traders immensely when it comes to improving their understanding of the markets, there are other factors that cannot be overlooked.
These include the psychology of trading.
In particular, emotional control and discipline are two very important things that can greatly impact how traders perform.
The best way to trade Forex is by making use of a strategy that is simple and easy to execute.
A well-established, proven Forex trading system that utilizes mechanical entry signals will be the best way to make consistent profits.
To Wrap It Up
So what exactly is the difference between pin bars vs hammer patterns?
Nothing. They are both the same pattern.
I hope this article helped you learn something new and hopefully made your life easier going forward when it comes to trading these patterns.
If you want to learn more about trading candlestick patterns, check out the articles in the related section.