Pin bar price action method

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

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

Bar looks like a pin thus the name Pin Bar - forms after an extended trend move upward or downward.

This reversal is confirmed after market closes below the candle stick that precedes this pattern. Below the reversal is confirmed after the market closes below the blue candlestick 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 trend lines can be used together with this signal to generate buy or sell crude trades.

Support and resistance

A pin bar that forms after trade price hits an important support or resistance level can be used as a signal to enter the crude trading market. When this pattern forms the trades taken should be in the opposite direction 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.

Combining With Support and Resistance

Oil Trendlines & moving averages

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

Combining With Trend Lines

Combining With Moving Averages

Oil Trading Fib Retracement Levels

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

Combining With Oil Trading Fib Retracement Zones

These trading patterns are often created near extremes in market swings, & they often happen at after false breakouts. This is why this pattern is used to place trades in the opposite direction of the tail.