Pin bar stocks price action method
A pin bar is a reversal stock signal on a stock chart which shows an obvious change in sentiment during that period.
This bar has a long tail with closing stock price near the open.
Bar looks like a pin thus the name Pin Bar - occurs after an extended move upwards or downwards.
This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the stocks 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 stock trend lines can be used together with this stock signal to generate buy or sell stocks trades.
Support and resistance
A pin bar that forms after stocks price hits an important support or resistance level can be used as a signal to enter the stocks market. When this pattern forms the trades taken should be in the opposite direction of the tail.
If the stocks market moves up this forms a pin bar with tall upper tail, then the signal is to short.
If the stocks market moves down the forms a pin bar with tall lower tail, then the signal is to long.
Combining With Support and Resistance
Stocks Trend-lines & moving averages
Pin bars that form after stocks price touches a stock trend line or moving average can be used as signals to enter the stock market.
Combining With Stock Trend Lines
Combining With Moving Averages
Stocks Trading Fib Retracement Levels
Pin bars that form after stocks price touches a Fibonacci retracement level can also be used as signals to enter the stock market.
Combining With Stock Fibonacci Retracement Zones
These patterns are often created near extremes in market swings, and they often occur after false break-outs. This is why this pattern is used to place trades in the opposite direction of the tail.
