Price Action Strategy with Support & Resistance Price Action Indicator

One of the strategies for trading price action is use of Pin-Bar. A pin-bar is a reversal price action signal on stock chart which displays an obvious shift in market sentiment during that period.

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

The pinbar candle looks like a pin thus the name Pin Bar - forms after an extended trend move upwards or downward.

How to Trade Price Action Setup with Support and Resistance Price Action Indicator

This trading price action reversal signal is confirmed after market closes below candlestick that precedes this trading price action setup. Below the pin bar trading price action reversal pattern is confirmed after the trading market closes below the blue candle that preceded this price action pinbar candle.

How to Trade Price Action Setup with Support & Resistance Price Action Indicator

Combining Pin Bar Price Action Setup with Support & Resistance Lines:

This pin bar trading price action reversal signal can be combined with other line tools such as Support & Resistance levels which can be used together with this trading price action trading signal to generate buy/sell trading signals.

Support and Resistance Areas

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

If the trading market moves up this forms a pin bar candlestick with tall upper tail, then the signal is to open a sell trade.

If the trading market moves down the forms a pin bar candle with tall lower tail, then the signal is to open a buy trade.

Price Action Strategy with Support & Resistance Price Action Indicator