Every trader knows that Pin Bars are an excellent reversal pattern, strongly recommended when a correction within a primary trend is considered has formed and you are trading with trend. A Pin Bar certainly provides an important technical signal, but its validity is strengthened when it is carried out in a price area rich in support and resistance levels. One of the methods often combined when using Pin Bars is the Fibonacci retracement tool. The retracement was created by Leonardo Fibonacci in the 12th century. The Italian mathematician popularized a simple sequence of numbers, known as the “sequence of Fibonacci numbers.” The Fibonacci numbers are as follows: starting from 0…
A powerful price action pattern one will encounter often at key levels is the pin bar setup. The original definition of this was coined by Martin Pring where he called this formation a pin bar (for Pinocchio bar) a bar that was telling a lie.