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Pin Bar

SPX - short term bounce possible but bigger trend still downSPX appears to be finding support around 3800 with last Friday closed way off its intraday low, forming a pin bar of sorts. This is an intermediate support (which is the 38.2% fib retracement of the major AB (covid crash recovery swing) swing up. A short rebound from oversold position will not be unexpected. However there are a number of near term resistances on the way up : 1. downtrend channel (see daily chart) 2. previous support turned resistance around 4100-4200 The risk remains that a move towards the H&S target of around 3500 seem plausible (incidentally this is also the 50% fib retracement of the major AB swing up). Reason being that consumer staple stocks (which are deemed defensive in a weak economy) have also broken down quite spectacularly last week (eg COST, WMT, TGT, DLTR). It is likely we are in a bear territory (unlike previous "corrections") where stocks will take a while to bottom out. One week at a time now to reassess the stock market indices. Swing/short term trading of any bounce is possible but need to have stop loss in place as it is "counter trend" trade. p/s Nasdaq is already down to 50% fib retracement level of it's major AB swing. It will be interesting to see if it could go any lower (TSLA seem to be the weak link right now). Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
SP:SPX
by Juliac
BNB-A Good chance for reversal?Hello everyone In the past couple of days we have seen a new face of the crypto market. Daily chart of BNBUSDT shows,a bear trend taking place and for today's bar so far we have a pinbar. Now you may think "It's a good time to buy", NO.After a bear trend this steep, with this much volatility and fear? Anyway,pinbar is a good signal but a really bad context.In lower time frames,we have the micro channels forming.If you are a trader and not an investor, you know what to do. For now. we have the support levels of 200$,225$ and 260$ which is more likely to break and for resistance we have the top line of the bear channel and key level of 300$.
by HubAlgo
3
ERRORS ON PIN-BARSThere are a large number of technical analysis figures, there are many different patterns, but as you know, they do not work 100% of the time. No matter what you trade, you should always pay attention to the market context and the pin bar is no exception. Pin bar is a very profitable pattern, provided that you trade it correctly. Beginners often make mistakes trying to trade every pin bar that is formed in the market. Today we will try to analyze the most common mistakes of beginners when trading a pin bar. 1. Trading pin bars in trending markets To begin with, every beginner should learn how to trade a pin bar in trending markets, because any pattern will work itself out if it trades in the direction of the trend. The trend is still our friend and we should use its strength to open positions. Look for an entry point on the pin bar in the direction of the trend and avoid losses. 2. Pin bar on daily charts A trader should be able to trade a pin bar on daily charts, because a daily chart is the best chart for trading. This is a fact. If you do not know how to trade a pattern on a daily chart, then you will not be able to trade it on smaller timeframes. As you know, the market is full of trading noise on low timeframes. That is why patterns are most difficult to work out there. In such noise, false signals appear that confuse beginners, but an experienced trader will be able to determine a really profitable entry point. 3. Market conditions It is very important to understand where to expect the right pin bar, which will bring profit. Pin bars can be found anywhere in the market, but this does not mean that each of them will bring you profit. No. The strongest signals occur near strong levels, it is at such points that it is worth looking for an entrance. 4. Stop loss Very often, traders trade a reversal pin bar, hoping to catch a trend change. If you catch such a movement, you can earn a lot, but it's difficult to do it. The price rarely immediately reverses after the pin bar, the market will fluctuate and if you put a stop loss too close to the position opening point, you may be knocked out. It is most correct to put a stop loss where the closing of the position will be correct, perhaps a little further than the opening point. No one wants to be knocked out of position ahead of time and watch the price go where we wanted, but without us. Conclusion The strongest signals simply cannot appear everywhere on the chart. You need to be able to filter out the signals correctly and use the most profitable ones. To do this, first study the theory, gain experience on older timeframes and only then practice more. Take your time. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
13
DOT- Going back up may not be an option!!hello everyone Yesterday's bar been closed with a lot of selling pressure and a shadow the same size of the bar on top, which is not a good sign for the market.if this price behavior continues we may have a bear flag formation right here (can be seen better on lower time frames). For DOTUSDT ,we have the resistance level of 17$ and support level of 16$ and the weekly trend line which held the price so far. I believe we may see the market a pinbar pattern here but it may have the same behavior as we seen on 11th of April.
by HubAlgo
DYDX-accumulation,double bottom ,wedge and higher lows.Hello everyone Good title,right? On daily chart on DYDXUSDT, we have good amount of structure and context for a reversal. I know many people may say" that's a bear flag right there ", yes with a pinbar rejection and a weekly wedge and higher lows. That's why the price is more likely to touch the 4.55$ or the bottom trend line again ( because of the shadows of the last 5 bars & the hanging man of today)and we will have a rejection there and might see the price reaches 6$ by the end of the month. Have a good trade & don't be greedy.
by HubAlgo
3
BNB- possible double bottom setupHello everyone After a red bar with a long shadow on weekly on BNBUSDT, now we have started the new week with another red one.On daily chart, we can see a long shadow that touched the weekly trend line and came back, which is a good thing and with the today's candle we can expect a double bottom, which can turn into a High 2 on a trading range and a good buy setup. On the daily chart we also have the 400$ resistance which is more likely to break again tomorrow and 390$ support level and the weekly trend line. I would wait for the next day's candle with a bull body to make sure of a reversal or bull trend or at least a weak bull channel. P.S. : This is not a financial advice.
by HubAlgo
SHIB- that's a very straight flag Hello everyone On the daily chart of SHIBUSDT, we can see a very straight(odd) bull flag pattern ,we also have a wedge pattern on weekly chart that shows a lot,and on daily we can see long shadows on the last 3 candles and the middle one is a Doji. With the indication of the things I just explained, we can have a rise close to the trend line and with the hope of having the market making higher highs we might be able to reach 0.000028$ within the end of the month. P.S. : I analyze coins (and markets)with good white paper and a good future,and I do not give financial advises or suggest markets.
by HubAlgo
It's time for a pullback on EURUSDEURUSD has reached the previous low and now we want to see if it will be able to break below it. If the breakout is unsuccessful then we could see a pullback to around 1,0900. If that would happen then ideally we want to see another test of the low with a wick below it but a candle close to the upside. That could also signal for aggressive entries with stops just below that reversal candle. In case of price going up against the main trend then we want to make sure we move our stops to BE as soon as possible.
by ForexTrendline
10
UNVR broke the trend lineAfter broke thre trend line with high volume, the price got exhausted and need more demand to continue the new trend after reversal. So thre price will retrace. There are two areas of demand. For this case, I will pay attention to the price action instead of putting limit order. If the price show reversal pattern (can be pin bar or engulfing candlestick) in the first demand zone (rectangle), I will buy. If the price still continue the pullback, I will set the limit order in the second demand zone (the lower rectangle).
IDX:UNVRLong
by albusthami
BTCUSDOne of the most important skill that you need as a trader is the ability to read the market structure, it is a critical skill that will allow you to use the right price action strategies in the right market condition. You are not going to trade all the markets the same way; you need to study how the markets move, and how traders behave in the market. The market structure is the study of the market behavior. And if you can master this skill, when you open your chart, you will be able to answer these important questions: What the crowds are doing? Who is in control of the market buyers or sellers? What is the right time and place to enter or to exit the market and when you need to stay away? Through your price action analysis, you will experience three types of markets, trending markets, ranging markets, and choppy markets. In this chapter, you will learn how to identify every market, and how to trade it. SFP - swing failure pattern The SFP is hinged on the basic idea that large players need equivalently large liquidity to fill their orders and avoid slippage by buying at the current market prices. Once they fill their orders, price usually reverts back. When the market fails to record a new high in an uptrend, or vice versa, it could be translated in two ways: the buyers took profits and were unwilling to buy again, or a huge group of sellers (bears) entered the market where it forced the price to go down. A lot of different reasons could cause these actions. From a technical point of view, we can assume that a significant technical level coincided slightly below the previous top, where the buyers predicted that the price could struggle to break above it, alongside with a combination of a bearish moving average cross or an indication or a bearish cross from a technical indicator/oscillator. Another reason which could force the market to move down at this point could be an economic event or release which came out and affected the selected instrument. Following the economic event, a huge group of sellers probably entered the market while at the same time some stops were triggered as the price was falling, adding to the downward momentum. In both cases, if the group of sellers exceeds the group of buyers then the odds for the market to move lower are very high. COUNTER TRENDLINE As you can see the btc respects the trend line, and when price approach it, the market reverse and continue in the same direction. When the market moves this way, trend lines help us to anticipate the next impulsive move with the direction of the market. Look at another example of an uptrend market. The illustration above shows us a perfect shooting star with a real small body and an upper long shadow, when this pattern occurs in an uptrend; it indicates a bearish reversal signal. The psychology behind the formation of this pattern is that buyers try to push the market higher, but they got rejected by a selling pressure. When this candlestick forms near a resistance level. It should be taken as a high probability setup. PINBAR The illustration above shows us a perfect shooting star with a real small body and an upper long shadow, when this pattern occurs in an uptrend; it indicates a bearish reversal signal. The psychology behind the formation of this pattern is that buyers try to push the market higher, but they got rejected by a selling pressure. When this candlestick forms near a resistance level. It should be taken as a high probability setup. LONG LEG LOWER SHADOW PINBAR As you can see the market was trending down, the formation of the hammer (pin bar) was a significant reversal pattern. The long shadow represents the high buying pressure from this point. Sellers was trying to push the market lower, but in that level the buying power was more powerful than the selling pressure which results in a trend reversal. PURE BREAKOUT Trending markets are characterized by two important moves, the first move is called, the impulsive move, and the second one is called the retracement move. here we got clear breakout with required volume & impulsive move now. DECISIVE CANDLE This candle forms when sellers push the market lower after the open, but they get rejected by buyers so the market closes higher than the lowest price and we can see here bitcoin retesting counter trendline before parabolic move start. HIGHER PROBABILITY RETEST AREA as you can see btc breaking out previous double top structure with high volume & making new high we can expect pullback & retest to double top area.
INDEX:BTCUSDLong
by Satoshi_Magnet
2