I think on this pic by James, the pin bar's 3rd bar IS higher than the 1st bar. So does this break the classical rule, meaning it's still a signal but not as valid as one where the 3rd bar's close doesn't go higher than the 1st's?
Here's the fourth pic. James says that the bearish outside vertical bar has a lower close; As with double highs and double lows, the close should be lower than the 1st low, right? But the second circle has a close that is not lower than the 1st low. ...