Pin bar energies price action method

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

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

Bar looks like a pin thus the name Pin Bar - forms after an extended move up or down.

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

Support and resistance

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

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

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

Combining With Support and Resistance

Energies Trend lines and moving averages

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

Combining With Energies Trend Lines

Combining With Moving Averages

Energy Trading Fib Retracement Areas

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

Combining With Energies Trading Fibonacci Retracement Zones

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