Price Action Strategy with Support and Resistance Price Action Indicator

One of strategies for trading price action is use of Pin-Bar. A pin-bar is a reversal price action signal on chart which portrays an obvious shift in market sentiment during that particular period.

This pinbar candlestick 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 Do I Trade Price Action Setup with Support and Resistance Price Action Indicator

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

How Do I Trade Price Action Setup with Support and Resistance Price Action Indicator

Combining Pin Bar Price Action Setup with Support and Resistance Lines:

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

Support and Resistance Areas

A pin bar price action candlestick that forms after price hits an important support or resistance level can be used as a 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 candles.

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

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

Price Action Strategy with Support and Resistance Price Action Indicator