Historical trade - 9th May 2003 - EURUSD

This pinbar confirmed my theory about Friday closes. This particular one again formed at the end of Friday.

The only things in its favour were:

+ size
+ off a recent resistance / support level
+ off 8 EMA

However, it did not form at a 50%-62.8% fib level, nor did it form along a trend line. As you can see, price gapped up on Monday's open before reversing.

This trade would've provided a 1:1 R:R, but because of the gap up, I would not have been able to open an order on the break of the pinbar.

Lesson:
- on intra-day charts (4H and below), beware of reversal signals towards Friday close.