I had some great success last week catching USD/JPY plunge with news from the Bank of Japan. I caught the downtrend which lasted for a while. I thought the trend might continue over into next week.
However I was wrong.
The downtrend soon ended after a little hesitation and I was stopped out. I still managed to get some profit from this event, but I did have higher earnings at some point.
What I did right:
I waited a while to see how the next 4 hour candle would turn out, and then see how the 2nd candle open. Read a news article predicting more drop in the price.
What I did wrong:
Did not realize the steam ran out after the weekend, price reversed on me.
Lesson:
The weekend can reset trading thinking.
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