052207 - AEO - 15mins - Loss*Paper

Symbol: AEO
Type: Long
Entry: The 10th Bar
Exit: Stopped out on the 15th Bar
Result: Lost -0.39%

Another perfect example of forcing a trade. I was looking for a quick reversal trade from (AEO) by picking out the strong closing 8th and 9th bar. The 10th bar was an upside-down hammer that closed above the 5eMA. I thought it would mark an end to the downward movement, and hoping that the prices will begin to rise. Although it managed to stay above the 5eMA, the prices never went far up, and eventually dropped the 5eMA hitting my Protective Stop of $28.25 during the 15th bar.