How Do I Analyze Price Action with Support & Resistance Indicator?

How Do You Trade Price Action with Support & Resistance Indicator?

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

This pin bar 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 Do You Trade Price Action Setup with Support & Resistance Indicator?

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

How Do I Trade Price Action Setup with Support & 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 tools such as Support & Resistance levels which can be used together with this price action signal to generate buy/sell trading signals.

Support and Resistance Areas

A pin bar price action candle that forms after price touches 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 trade transactions taken should be in the opposite direction of the tail of this price action candlesticks.

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 signal is to open a buy trade.

Price Action Strategy with Support & Resistance Indicator

How Do I Analyze Price Action with Support & Resistance Indicator?