While they all show rejection, Bullish pin bars that close bullish (green) perform better than Bullish pin bars that close bearish (red). Bearish pin bars that close bearish (red) perform slightly better than Bearish pin bars that close bullish (green).
The reason is that when a pin bar with a lower wick closes bullish, it is a lower time frame bullish engulfing pattern. Pin bars with upper wicks that close bearish are bearish engulfing patterns on a lower time frame.
This is a good observation. Candlestick patterns can conceal other candlestick patterns on other time-frames. But in fact they have to, that’s the nature of charts drawn with candlesticks on different time-frames.
I can’t see great advantage of selecting your trading time-frame, the one you draw entries and stop-losses and TP’s from, and then evaluating your TA on a lower time-frame.
I look at what is going on above and below the setup time frame. If I’m using price action to time an entry, I like to know the underlying market structure that the price action actually represents such as in the photo where the bullish pin bar closes bullish which represents a lower time frame break of structure.
I’m not looking at a candle, I’m looking through a candle.
