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 candlestick 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 tools such as Support & Resistance levels, Fib retracement levels and bitcoin trendlines can be used together with this signal to generate buy/sell cryptocurrency trades.
Support & resistance
A pin bar that forms after bitcoin price hits an important support or resistance area 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 Trend Lines
Combining with Moving Averages
Bitcoin Trading Fibo Retracement Areas
Pin bars that form after bitcoin price touches a Fib retracement level can also be used as signals to enter the btcusd market.
Combining with Bitcoin Fibo Retracement Zones
These trading patterns are often developed 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 direction opposite of the tail.
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