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