Hi Lartrade,
What I mean by "trap" trade is I place 2 entry order:
1. I place buy stop order at the most recent resistence line +10 pips, with stop loss at the most recent support line.
2. I also place the next entry which is sell stop order at the most recent support line +10 pips, with stop loss at the most recent resistence line.
Usually, I put my TL base on the daily movement of each currency pair I trade.
EUR/USD ~~~ daily movement is about 80 pips
GBP/USD ~~~ daily movement is about 100 pips
USD/CHF ~~~ daily movement is about 100 pips
USD/JPY ~~~ daily movement is about 70-80 pips
This way, we either take profit from the news when it hit our entry order, or we are whipsawed and loss both trades, which is very rare thing to happend.
We cannot profit all the time trading news but this is the method I use, and winning percentage of this technique is quite nice for me.
Hope this help
What I mean by "trap" trade is I place 2 entry order:
1. I place buy stop order at the most recent resistence line +10 pips, with stop loss at the most recent support line.
2. I also place the next entry which is sell stop order at the most recent support line +10 pips, with stop loss at the most recent resistence line.
Usually, I put my TL base on the daily movement of each currency pair I trade.
EUR/USD ~~~ daily movement is about 80 pips
GBP/USD ~~~ daily movement is about 100 pips
USD/CHF ~~~ daily movement is about 100 pips
USD/JPY ~~~ daily movement is about 70-80 pips
This way, we either take profit from the news when it hit our entry order, or we are whipsawed and loss both trades, which is very rare thing to happend.
We cannot profit all the time trading news but this is the method I use, and winning percentage of this technique is quite nice for me.
Hope this help
Don't be a human when you trade,
trade like a machine you are.