Pin bar metals price action method
A pin bar is a reversal metals signal on a metals chart which shows an obvious change in sentiment during that trading period.
This bar has a long tail with closing metals price near the open.
The bar looks like a pin thus its name Pin Bar - occurs after an extended trend move up or down.
This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the metal market closes below the blue candle that preceded this candlestick.
Combining with line studies:
This signal can be combined with other line studies such as Support and Resistance levels, Fibonacci retracement levels and metals trend lines can be used together with this metals signal to generate buy or sell metal trades.
Support and resistance
A pin bar that forms after metals price hits an important support or resistance level can be used as a signal to enter the metal market. When this pattern forms the trades taken should be in the opposite direction of the tail.
If the metal market moves up this forms a pin bar with tall upper tail, then the signal is to short.
If the metal market moves down the forms a pin bar with tall lower tail, then the signal is to long.
Combining With Support and Resistance
Metal Trend-lines and moving averages
Pin bars that form after metals price touches a metals trend line or moving average can be used as signals to enter the metals market.
Combining With Metals Trend Lines
Combining With Moving Averages
Metals Trading Fib Retracement Areas
Pin bars that form after metals price touches a Fibonacci retracement level can also be used as signals to enter the metals market.
Combining With Metals Fib Retracement Zones
These trading patterns are often formed near extremes in market swings, and they often happen at after false breaks. This is why this pattern is used to place trades in the opposite direction of the tail.
