Setup for this trade was basically a L1 short following a 3 bar bear spike and a Head and shoulders pattern.
I usually do not like to base my trades on the H & S pattern because it could very well be considered just a Bull flag. Price action and market dynamics come first.
This is what happened later.. Took about 18pips (1:1 Risk : Reward). I closed the trade because i started to get nervous when the market started to form a lot of tails at the bottom of the bars. What i failed to see was that the last 20 bars never touched the EMA and so I could guess that there would be strong sellers waiting with limit orders at the EMA. Plus, the move down was in a tight bear channel, so i could at least expect the first break above the channel to fail.
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