Pin bar stock trading price action method

A pin bar is a reversal stock signal on a stock chart which displays 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 - forms after an extended trend move upward or downward.

This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the stock trading market closes below the blue candle that preceded this candle.

Combining with line studies:

This signal can be combined with other line tools such as Support & Resistance levels, Fibonacci retracement levels and trend lines can be used together with this stock signal to generate buy/sell stock trades.

Support and resistance

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

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

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

Combining with Support & Resistance

Trendlines & moving averages

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

Combining with Trendlines

Combining with Moving Averages

Stock Indices Fibonacci Retracement Levels

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

Combining with Trading Fibonacci Retracement Zones

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