Pin bar xauusd price action method

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

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

Bar looks like a pin thus the name Pin Bar - occurs after an extended move upwards or downward.

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

Combining with line studies:

This signal can be combined with other line studies such as Support and Resistance levels, Fibonacci retracement levels and gold trend lines can be used together with this gold signal to generate buy or sell xauusd trades.

Support and resistance

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

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

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

Combining with Support & Resistance

XAUUSD Trendlines & moving averages

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

Combining with Gold Trend Lines

Combining with Moving Averages

Gold Fibo Retracement Levels

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

Combining with Gold Trading Fibonacci Retracement Zones

These patterns are often created near extremes in market swings, & they often form after a false break-outs. This is why this trading pattern is used to place trades in the opposite direction of the tail.