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Pin bar price action method

A pin bar is a reversal signal on a chart which displays an obvious change in sentiment during that period.

This bar has a long tail with closing xauusd price near the open.

Bar looks like a pin thus the title Pin-Bar - occurs and forms after an extended move upward or downward.

This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the market closes below the blue candlestick that preceded this stick.

Example of How to Interpret/Analyze Reversal Signal with This Reversal Strategies

Combining with line studies:

This signal can be combined with other line studies such as Support & Resistance levels, Fibonacci retracement levels and trend-lines can be used together with this signal to generate buy/sell trade transactions.

Support and resistance

A pin bar that forms after trade price tests/touches an important support or resistance zone can be used as a trading signal to enter into the market. When this pattern setup formation forms the trades taken should be in the direction in the opposite trend of the tail.

If the market moves upwards this forms a pin bar with tall upper tail, then the signal is to short.

If the market moves down then forms a pin-bar with a tall lower tail, then the trading signal is to long.

How to Interpret/Analyze Reversal Technical Analysis Signal in XAUUSD Trading

Combining Together with Support & Resistance

XAUUSD Trendlines & moving averages

Pin bars that form after price tests/touches a trend line or moving average(MA) can be used as signals to enter the market.

How to Interpret/Analyze Trend Analysis Buy Signals and Sell Signals

Combining with TrendLines

How Do I Use Moving Average Indicator on Chart?

Combining Together with Moving Averages

Gold Fibonacci Retracement Levels

Pin bars that form after price touches a Fibonacci retracement level also can be used as signals to enter the trading market.

Pin Bar Price Action Method and Pin Bar Reversal Signals

Combining Together with Fibonacci Retracement Zones

These patterns are often developed near extremes in market swings, & they often form after a false breakouts. This is why this pattern is used to place trades in the direction in the opposite trend of the tail.

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