This next one is a long trade I took on the GBP/CAD on the 30th of September 2012. Again, this was another 6ema touch trade. Price had stayed close to, but closed above the 6ema (yellow line on my chart) for 11 consecutive days. The last candle was a pinbar as you can see. I entered long manually when price was touching the 6ema. Risk was 2%. Here is my entry chart (click to enlarge).
As you can see, the bar I entered long on, when it was touching the 6ema ended up closing well below the 6ema. Therefore I moved my stop up from 1.5806 to 1.5844 to reduce my risk, as my confidence in the setup had gone. My stop was hit, and I made a reduced loss of a little over 1%. Had I left my stop loss where it was, I would've made the full 2% loss. So here is the question. The market was in an uptrend and had closed above the 6ema for 11 consecutive days. As soon as I entered long, it closed well below the 6ema. Bad luck? No, because if you notice the circled bar, it is a pinbar suggesting a reversal. I was aware of this initially but I ignored it due to the following days candle, which was also a pinbar, but in the opposite direction. I had thought that the downwards movement had run it's course and the market would continue upwards. Clearly I was wrong, and the first pin was much more significant because of it's location at a swing high.
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