My Forex Trading Process on a Busy News Day

With major economic news like Initial Claims and Crude Inventories scheduled for release, I knew the morning would be active. On days like this, you’re essentially working against a deadline, trying to get your positions set before the data drops. My focus immediately went to the USD/CAD pair.

A look at the higher timeframe chart showed a potential breakdown through an uptrend support line. But it wasn't confirmed yet. This is precisely why I use multiple timeframes in my —it allows me to be selective with my entries while also broadening my view of potential setups. So, I drilled down to the 60-minute chart to see if a confirmed setup was waiting for me there.

Technically, the 60-minute chart was signaling a short, but something about it felt off. The breakdown candle was confirmed by both price action and the MACD histogram, which was good. The problem was that just one candle earlier, the pattern had faked a breakout to the upside. Even though that move wasn't confirmed, it made me question whether the market was truly breaking down or just chopping around without direction. I needed a cleaner picture, so I moved to the 30-minute chart.

This is my typical process: scanning through different views of the same pair. The 180-minute chart looked great but had no setup. The 60-minute had a setup but the chart looked messy. But the 30-minute chart? It had both a confirmed setup and a clean look. That’s where I decided to make my move.

The First Trade: A Quick Short on USD/CAD

The setup was just below the 1.1500 psychological level, which I liked. I entered short at 1.1479. However, I could see several uptrend lines below that would likely act as support, so I knew I had to manage this trade carefully. My plan for here was to take quick profits. I set my first profit target at the 1.618 Fibonacci extension level of 1.1465 and a second one at 1.1459.

For my stop-loss, the technically correct level was way up at 1.1497. That felt a bit too far for my entry, so I decided to cheat it down to 1.1491, right at a resistance line from the Wave indicator. By 7:00 A.M., my first profit target at 1.1465 was hit. I immediately moved my trailing stop to protect the rest of the position. A few candles later, prices rallied and took me out for a wash on the remainder of the trade. No worries—it was a solid, managed way to start the morning.

The Second Trade: Pivoting Long Before the News

After getting stopped out of the short, I noticed the bounce on the 30-minute chart and my attention went back to the 180-minute chart I’d analyzed earlier. It was still waiting for a MACD confirmation, and with the 8:30 A.M. news release approaching, it felt like prices were getting ready to move. This kind of active management is key when .

I decided to place a proactive order to buy at 1.1508, which would get me into a long position above both a key downtrend line and the 1.1500 psychological level. Because I’d be entering during a volatile news event—a “hot zone”—I planned to use a 60-second stop right after execution. After that initial minute, my real stop-loss would sit at 1.1491, the low of the breakout candle. My first profit target was set at the 0.618 Fibonacci level of 1.1537.

At 8:30 A.M. sharp, the hot zone hit. My entry was triggered, and so was my first profit target, all in one swift move. I then placed a trailing stop at 1.1520 and a second profit target at 1.1562. Prices didn't push higher, though. They slipped back down and hit my trailing stop, closing the trade. It was a good result, and it was time to call it a day.

An End-of-Day Habit and a Surprise Trade

One thing I always do is glance over my trading platform to make sure I don’t have any old, forgotten orders sitting out there. I’ve made that mistake before, and it’s an easy one to avoid. As I was checking, I saw that a contingent order I placed a few days ago on the USD/CHF had triggered.

I was now long on the “Swissy” from a pullback I had been watching. The entry was triggered at 1.3005, and my pre-set stop-loss at 1.2974 was automatically in place. I set two profit targets for this new swing trade at 1.3178 and 1.3195.

Keeping an Eye on the Next Opportunity

Finally, I took a look at the daily chart for USD/JPY. It showed a confirmed breakdown through a steep uptrend line, but I just wasn't comfortable getting short right at that moment. My focus shifted to a lower, more balanced uptrend line. Instead of taking the immediate trade, I decided to set a proactive sell stop order at 116.65. If the weakness continues over the next few days, I’ll be ready for it. For anyone learning , this kind of patience and planning is crucial, whether you’re pursuing it as a full-time job or a .