Some of the best entry signals happen just ahead of a major news release, and in some cases, right after. On this USD/CAD trade, the entry bar occurred right after the big Canadian employment news on Friday. I saw this huge pin-bar candle formation (blue arrow) and decided to enter a short position at the bottom of the candle bar. I have marked the entry with a green arrow on the chart bellow. I decided to put in a take-profit order near 1.2441.
The risk on this trade was 38 pips, and the profit was 69. So the risk:reward ratio was almost 1:2. I decided to take profit near 1.244 because that area was used as support about three times on the 3rd of June. I figured the market might stall there or maybe even reverse, so I just exited at this pivot zone.
