Pin bar crude oil price action method

A pin bar is a reversal oil signal on a oil chart which shows an obvious change in sentiment during that period.

This bar has a long tail with closing crude oil price near the open.

Bar looks like a pin thus the name Pin Bar - forms after an extended move upwards or downwards.

This reversal is confirmed after market closes below the candle that precedes this pattern. Below the reversal is confirmed after the crude oil market closes below the blue candlestick that preceded this candlestick.

Combining with line studies:

This signal can be combined with other line studies such as Support and Resistance levels, Fibonacci retracement levels and oil trend lines can be used together with this oil signal to generate buy or sell crude oil trades.

Support and resistance

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

If the crude oil market moves up this forms a pin bar with tall upper tail, then the signal is to short.

If the crude oil market moves down the forms a pin bar with tall lower tail, then the signal is to long.

Combining With Support and Resistance

Oil Trading Trend-lines & moving averages

Pin bars that form after crude oil price touches a oil trend line or moving average can be used as signals to enter the oil market.

Combining With Oil Trend Lines

Combining With Moving Averages

Oil Trading Fib Retracement Areas

Pin bars that form after crude oil price touches a Fibonacci retracement level can also be used as signals to enter the oil market.

Combining With Oil Fib Retracement Zones

These patterns are often created near extremes in market swings, and they often occur after false break-outs. This is why this pattern is used to place trades in the opposite direction of the tail.