FX00084 - GBPUSD pinar on retrace to D 21EMA
PInbar on 4hr chart rejecting the 21EMA on the daily chart. There's a chance that I should possibly have waited for confirmation before entering, however it's a very nicely defined bar rejecting a key level.
Trade closed: stop reached:
There's a few things we can take from this ill fated trade.
Firstly, the pin bar tail could have been longer and more obvious to give more weight to the bar and show us that bulls were in control.
Second, price was below all 3 EMA's. Perhaps on this occasion it would have been wise to wait for price to close above the moving averages to confirm that price was going to move in the right direction. Even entering on the break of the pinbar would not have saved us from a loss on this occasion.
Firstly, the pin bar tail could have been longer and more obvious to give more weight to the bar and show us that bulls were in control.
Second, price was below all 3 EMA's. Perhaps on this occasion it would have been wise to wait for price to close above the moving averages to confirm that price was going to move in the right direction. Even entering on the break of the pinbar would not have saved us from a loss on this occasion.