Trade Gold Trading

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 name Pin Bar - occurs after an extended move upwards 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 candle that preceded this stick.

Example of How to 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, Fib 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 touches an important support or resistance zone can be used as a trading signal to enter into the market. When this pattern setup forms the trades taken should be in the direction opposite of the tail.

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

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

How to Analyze Reversal Technical Analysis Signal in XAUUSD Trading

Combining with Support & Resistance

XAUUSD Trendlines & moving averages

Pin bars that form after price touches a trend line or moving average can be used as signals to enter the trading market.

How to Interpret Trend Analysis Buy Signals & Sell Signals

Combining with Trend Lines

How Do I Use Moving Average Indicator on Chart?

Combining with Moving Averages

Gold Fib Retracement Levels

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

Pin Bar Price Action Method & Pin Bar Reversal Signals

Combining 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 trading pattern is used to place trades in the direction opposite of the tail.

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