DislikedHi PB,
Thank you for posting the trade.
I'm glad you've posted this because the "big bullish candle" before the "small pin bar" is a type of scenario that I've always avoided EVEN when I see a big pitbull pinbar to follow.
What specific factors would cause you to trade a little poodle like that after a big candle?
I know Jim and Mike used to trade them back in pre-2007 ish but only when there were tons of confluence.
Consider the following chart - the pin is actually fairly good sized but I would still consider it to be in the...Ignored
The short answer is, leave the poodle at home
It's so much easier to wait for the pitbull bars/scenarios. This is coming from experience. In this case I would not touch that bar because it has a weak close and it is coming off a LARGE bullish move that fighting that is just not worth my time.
2 keys to trading smaller bars for me are, they work better in less trending markets(ie not fighting a huge move like your chart), and also I will watch the FTA like a HAWK and not ever look to take a big loss. That generally means for me quick in, quick out.
Hope that helps
Mike