ForexSpirit

So today was the big FOMC announcement.  The plan of action was to take profits near the recent highs around 1.29, as it was quite likely that dollar bulls would take charge eventually.

While the plan was good my execution was slightly lacking. I attempted to exit all my trades manually, when it would have made much more sense to have set a profit objective.

Price never hung around the high 1.28s for very long, and I missed my chance to exit at that level.  A preset profit stop would have solved this problem.  A good level would have been around 1.288, which was an ‘anchor’ point.

‘Anchor’ point is a new term I came across this week on Tom Yeoman’s blog.  He looks for anchor points as profit levels after trading a fundamental news report.  He defines an anchor point as a price level which price has touched repeatedly in the recent past.  1.288 was that level today.

I even doubled up on my position as Dirk recommended this course of action to make the most of any short lived euro spike.

For all my efforts I only ended up with a few pips profit.  After some dollar strength euro then made a small comeback.  I entered a small euro long positive looking for 30 pips.  When dollar strength returned I bailed as I knew it would be for real this time.

So while not an overly profitable day, a valuable lesson was learned on how to set up correctly when looking to make the most of a projected spike.

Time now to wait and see how much strength the dollar has in it.