This trade would've taken place on the 14th Feb, 2003. I identified a pinbar with the following confluence:
- rejection off 21 EMA
- rejection off trend line
- rejection of 50% fibonacci retracement level
- rejection off a secondary support level
What happens next...
What can we learn from this trade?
- firstly. the pinbar is located in the middle of the longer-term range
- the pinbar formed late Friday just before the weekend close
- the breakout candle was a bearish doji, so close trade if the breakout turns bearish?
- the support level that the pinbar formed off wasn't significant
- while the pinbar formed off the 21 EMA, it formed below the 8 EMA, suggesting that momentum is turning bearish at the time of the pinbar's formation