Forex Price Action Strategy with Support & Resistance Price Action Indicator

One of the strategies for trading price action is use of PinBar. A pinbar is a reversal forex price action signal on a forex chart which shows an obvious shift in market sentiment during that period.

This pinbar candle has a long tail with the closing price near the open.

The pin-bar candlestick looks like a pin thus the name Pin Bar - occurs after an extended move up or down.

How to Trade Forex Price Action Pattern with Support & Resistance Price Action Indicator

This forex price action reversal signal is confirmed after market closes below candlestick that precedes this forex price action pattern. Below the forex pin bar price action reversal pattern is confirmed after the market closes below the blue candle that preceded this forex price action pinbar candle.

How to Trade Forex Price Action Pattern with Support & Resistance Price Action Indicator

Combining Pin Bar Forex Price Action Pattern with Support & Resistance Lines:

This pin bar forex price action reversal signal can be combined with other forex line studies such as Support and Resistance levels which can be used together with this price action trading signal to generate buy or sell signals.

Support and Resistance Areas

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

If the market moves up this forms a pin bar candlestick with tall upper tail, then the forex signal is to open a sell trade.

If the market moves down the forms a pin bar candlestick with tall lower tail, then the forex trading signal is to open a buy trade.

Forex Price Action Strategy with Support & Resistance Price Action Indicator