Pin bar bitcoin price action method

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

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

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

This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the btcusd 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 bitcoin trendlines can be used together with this signal to generate buy or sell cryptocurrency trades.

Support and resistance

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

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

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

Combining with Support and Resistance

Bitcoin Trendlines and moving averages

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

Combining with Bitcoin Trendlines

Combining with Moving Averages

Bitcoin Trading Fibo Retracement Areas

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

Combining with Bitcoin Fibo Retracement Zones

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