Breakout Trade on US Building Permits, Core CPI m/m - Eur/Usd 18th Nov

Hello, guys tonight im-a share a short one. Im doing a Breakout-Trade system which i have been testing whenever I encounter the chance. Ok, here is how it goes, taking example from the trade i was in an hour ago.

Key Entering Criteria:
- Enter at the moment before a major announcement, say US announcement for this case, a minute or two
- Check Forecast on announcement to have a bias on whether to long or short.
- S/L MUST be placed, i usually put about 10 - 15pips away, in case of "jerk" movement right at the time of announcement
or
- Place it at last candle tip / Parabolic SAR / Bollinger Band
- Still researching on more entering criteria.

Ok, take a look below.

Price break-down +21 within ten minutes after announcement. One of the thing i couldnt get it was, there were two announcement, and one was Red and the other was Green, which means to say one was GOOD and another was BAD for the USD.. which you gonna bias? It went smoothly down until it met my Fibo 38.2% level when there was an indication of reversal check out the purple candle next.

Exit Criteria:
- Manual take-profit @ 15-30 pips (this creates a reward-to-risk ratio of 2:1 based on ur s/l)
- Manual trailing stop once profit approaching profit; that is if u wish to have ur profit run, but based on my encounters, there are always retracements on breakout.
- Exit if price hesitate too long, cuz there aint no breakout no more. why? check out what happen after i came out of shower while leaving my position on..


Kaput! S/L hit. Therefore, doing this technique of breakout trading has to be real FAST. u gotta be like what they say, a sniper. Saw opportunity enter fast, take profit, exit fast. I am still further testing this system becuz i believe it serves a good reward-to-risk ratio. Well, of cuz u need to anticipate major announcement before it happens. havent tried any other currencies though. check out forexfactory.com link on the right. u gotta know what kind of announcement is happening before u decide to enter a position.

Thats it for the night folks.

Black