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 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 ==22==downwarddownwards.
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 candle.
Combining Together with line studies:
This signal can be combined with other line tools like Support & Resistance levels, Fib retracement levels and bitcoin trendlines can be used together in combination with this trading signal to generate buy/sell cryptocurrency trades.
Support & resistance
A pin bar that forms after bitcoin price hits an important support/resistance area can be used as a signal to enter the btcusd market. When this pattern forms the transactions 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 trading signal is to short.
If the btcusd market moves down then forms a pin bar with tall lower tail, then the trading signal is to long.
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.
Combining with Bitcoin Trend Lines
Combining with Moving Averages
Bitcoin Trading Fibo Retracement Areas
Pin bars that form after bitcoin price touches/tests a Fib retracement can also be used as signals to enter the btcusd market.
Combining Together with Bitcoin Fib 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 trade transactions on the direction in the opposite market trend of the tail.
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