Current Trend= The trend remained up the entire day.
Today I only looked for long trades.
11:15 am ET – There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle which was at 9589 with a stop at the most recent swing low which was 9568. Since I was only 11 pips away from the nearest 00 level I decided to go for the same amount of pips I was risking, which in this case was 21. This put my target at 9610.
2:00 pm ET – My target is not hit and I know that the interest rate statement is about to come out so I decide to cut my losses and exit my trade. I exited at 9583.
Trade Result: -6 pips; R-Multiple= -0.28
Even though this trade would’ve worked into my favor if I had held onto it, the big news events such as can go either way and it basically becomes a coin flip. Now keep in mind, the risk was relatively small on this one. It was only 21 pips. So I can understand if you decided just to hold onto this and just hope for the best. For learning purposes however, I will strictly stick to my rules and since I said I would always exit before interest rate statements and NFP reports, I held true to my words and got out of the trade 🙂 Thankfully it was only a small loss.