Trade Bitcoin Trading

Pin bar bitcoin price action method

A pin bar represents a reversal signal in cryptocurrency on a chart, indicating a clear shift in sentiment during that timeframe.

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

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

This reversal gets confirmed when the market drops below the prior candle after close. For BTCUSD, it confirms below the blue candle before it.

Pin Bar BTCUSD Price Action Reversal - Reversal Strategy - Reversal Method

Combining Together with line studies:

This particular signal can be effectively integrated with other graphical tools like Support and Resistance levels, Fibonacci retracement markings, and Bitcoin trendlines to generate robust buy or sell signals in the cryptocurrency market.

Support & resistance

A pin bar that appears after the price of bitcoin reaches an important area of support or resistance can signal when to enter the btcusd market. When this happens, trades should be made in the opposite direction of the tail.

If the BTCUSD market rises and forms a pin bar with a long upper shadow, the signal is to short.

If the BTCUSD market drops and shapes a pin bar with a long lower shadow, the trade signal calls for going long.

BTCUSD Trading Reversal Strategy - BTCUSD Reversal Method

Combining Together with Support & 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.

Pin Bar Action Combined Together with Bitcoin Trend lines - Reversal Method

Combining with Bitcoin Trend Lines

Pin Bar Bitcoin Price Action Combined with Moving Averages - BTCUSD Trading Reversal Strategy

Combining with Moving Averages(MAs)

Bitcoin Trading Fibo Retracement Areas

Pin bars that appear after the bitcoin price touches or tests a Fib retracement can also be used as signals to get into the btcusd market.

Pin Bar Bitcoin Price Action Combined with Fibonacci Retracement Levels - Bitcoin Trading Reversal Strategy

Combining Together with Bitcoin Fib Retracement Zones

These trading shapes usually show up close to big market changes, and they often occur after fake breakouts. That's why this shape is used to make trades that go against where the tail points in the market.

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