Event Trading GBP/USD
We know at ‘A’ ie 0930 there is high importance economic data coming likely to affect GBP. We know this from the Economic Calendar on www.dailyfx.com
At end of minute 1 we notice the market is lower
So as soon as in minute 2 it breaks below the low of minute 1, we sell GBP/USD at ‘B’
Our exit is 1 minute high, 3 minute high and 5 minute high. ‘C’ is 1 minute high – ie the price is higher than previous minute
At point ‘D’ it is 3 minute high.
In reality my trades shown below
◦ Notice as I am in profit, and the trade goes in my direction – I add to the position.
◦ If any those later positions turn into losses, I exit.
P = Profit; L = Loss (we went short GBP/USD remember. Ie Sold high, bought cheaper later.
eg. Sold short to open at 1.57228 and bought back to close at 1.57064 to make 164 pips profit. If bet £1 per pip then make £164 on that trade