Forex Trade Example (6 May 14)

It has been a quiet day. Only managed one ideal trade today on AUD/USD. The other trade was a take profit from the previous day.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade 1 (5 May 14 1600hrs)

Trade: Buy on short term uptrend pullback. Prices slid, but held above previous resistance, sticking to medium term uptrend. Held on and got out at 1.1 pips at end of the day.

Review: Very short term upsurge, caught too late. Good that medium term trend is upwards and got out before the next trading day. Not a good trade.

Trade 2 (6 may 1400hrs)

Trade: Buy on gradual uptrend, 15min chart, ignoring large doji due to Australian retail sales announcement. Took position at upward swing after pullback. Took profit at 4.1 pips.

Review: If not for the large doji, would have held on for a little more profit, nearer to previous high. But technically not advisable. Good trade.

Summary

The second trade showed 2 points in technical trading. First, refrain from trading during times of important news announcements. There might be a large adjustment to the market. Whether it affects the upcoming trend of not, it will show in the next few bars and price action. Second, ignore absurdly large movements on the charts within 1-2 bars during a news announcement. It will could your judgement of reading the real trend and direction signals.