#GNIP 36.00 closes with a Pin Bar

A Japanese candlestick perspective might classify this not as a hammer (a bottom reversal pattern) but more likely as a hanging man (a potential top reversal pattern). While technically a bearish pre-signal, confirmation is essential—this occurs if the price trades below the pin bar’s low (or "head").

However, rather than focusing too much on naming the pattern, I suggest a simpler approach: understand the psychology behind the price action.

The key lies in what the pin bar represents:

1. It shows rejection at a certain price level, where buyers and sellers battled, but one side failed to maintain control.

2. If the price moves above the high of the pin bar, it suggests trapped short sellers may exit, fueling upward momentum.

3. If the price breaks below the low, it signals that sellers are gaining control, reinforcing the bearish outlook.

Refer to my attached note for more details. Focus on understanding the psychology of market participants— those who sold short, their potential stops, and the emotions driving decisions as price breaks above or below. 

4. Market structure. Price is in an overall uptrend so the bias is to the upside.

This mindset will provide far more insight into price action than just memorizing candlestick names.
#GNIP