You probably remember the famous pinocchio character with its long nose. In this strategy the candle bar is trying to fool us. The Pinocchio bar shortly known as a pin bar has a small body with very long line (or nose in this case). Have a look at the pin bar in the picture.

As you know the nose of Pinocchio grew when he lied. The same thing is happening here with a pin bar. When the line goes up it has a higher probability that the price will go in the opposite direction. So to give you an example: If the line on the pin bar is going up you will short this and if the line is going down you will trade a call for long. The entry point is not really specified because it depends from trader to trader but most of them enter the trade immediately after this pin bar closes. 

Strategy Tips

Assuming that you are trading in a trend market and you only take trades which are in line with the trend then you have definitely a good and reliable strategy because it can offer you high accuracy. The pin bar is giving you a good indication how the participants of the market are behaving. You only have to be disciplined to wait for the bar to close.