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Here's a trade that got triggered on Tuesday 23 of Jan 2018 as per the chart below.



Looking at the plain chart above probably doesn't tell you much, so let me explain by drawing some lines on the chart (below).



What I was looking at here was a continuation to the downside following downward pressure from a bearish RSI trendline which most recently expressed an 'M' shape, which is one of the signs of a bearish move or continuation, at least in my opinion. Price actually continued downwards after this and neared my Take Profit (TP) target.

But there was one thing I forgot to consider...news!



Zooming in on the H4 (4 hour) AUDNZD chart, you can see the negative effect this had on my trade below. The negative CPI q/q number caused my trade to spike higher back up through my entry and near SL (below).



Taking another look at the Daily chart now, we can see the effect the negative NZD news had on price and then conversely price. The takeaway here for me is to remember to be aware of news releases concerning running trades. It is important to note that this is the only time I take news into account. I do not let news affect my trading, or take news-based trades.



Clearly being aware of the NZD news prior I would have likely moved my stop loss (SL) to break even plus (BE+) in order that I lock in a very small part of the move and not let a positive winning trade turn into a negative losing trade.

 

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