ALWAYS check when the News items are coming out. You can do this by going to www.forexfactory.com and generally only take notice of the News items that have a high impact (coloured red). I made the mistake today of not checking the News. Take a look at the 10 minute chart of the Dow Jones below. At Point A I went short (an upthrust). However, at Point B the market turns around and we have what looks like a test/shakeout, so I get out. The market then falls, to my annoyance, but on seeing the turn around at Point C (a down-bar, low volume, closing in the middle), I go long (buy), and make back my losses. So ..... break even today too!
I then (obviously too late) checked the News, and there was News came out at 3pm - hence the confused signals. If I had known News was coming out I would have been wary, and probably not entered the market until seeing a principle as a reaction to the News coming out - hence I would have saved myself the hassle.
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