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Reasons why this price action forex pin bar failed.


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Reasons why this price action forex pin bar failed

 

nzd.gif

 

Forex Pair: Nzd Jpy

A double pin formed at the 365ema. However we do not take these kind of trades and sure enough, the pin bar failed.

Some reasons:

- The pin bar blended into the whole picture. If you zoom out, you can’t see the pin .

Remember we want to take pins that protrude out from surrounding prices. This one was relatively beside the surrounding bars.

- A mountain of resistance blocking its upwards path –

the 200, 150 ema, 10 and 25 ema.

- Pair is in a downtrend as shown by the 10 25 strategy.

Therefore although we have the 365 moving average as the backing. This is a trade where we would not enter.

 

 

Ezekiel Chew

Asia's #1 Forex Mentor

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The price has been ranging for quite a long time at the time when that particular pin bar got created, when the market is in a ranging mood you can't trust pin bars that much because you will see many fake ones. Also the larger move is towards the down side and dominated the price at that point and broke the pin bar.

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  • 6 months later...

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