Hi swissy
My hard stop is 20 pips on all news trades but it is rarely hit as I would have manually closed before. I am looking for 2 types of price action. The first is a strong reaction with long price bars and no retrace only congestion before continuing. This is my preferred opportunity because I am generally in and out within 10 minutes. The second type is a gradual price step where you get retraces. This tends to be off weaker news or in between other news events. With this profile I will get my stop to break even as soon as I have 15 pips in my favour. I don't like being in for too long as sentiment can change in a blink.
Sometimes price can react in both directions as you have noticed and these can be very profitable. If price isn't behaving as you expect the safest course of action is stepping aside. That being said if you know your fundamentals it will be crystal clear the opportunity is still there but at a better price point. This is a pump and dump or dump and pump scenario. To me it's big players looking for liquidity and this is where technical becomes important to get in at the right level with as little risk as possible. These can be tricky but also profitable. Same 20 pip stop applies here.
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