To trade news successfully, we should know how the currency pairs are related to each other. Some pairs have direct correlation while some others have inverse correlation among them. Also, the amount of uptrend or down trend seen in the past few days may affect the price movement considerably as well. Also, cross pairs are normally not affected by news. We may see a momentary uptrend or downtrend but after that price usually returns back where it was before the news was released. All these factors should be studied well before trading news. If so, as you have opined, there is a very good chance of making money.
-
The Forex, Binary Options Forum - welcomes you to our Community!DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.
Please take a look around, and feel free to .
Not trading around news times.
- Thread starter nasim39
- Start date
To trade news successfully, we should know how the currency pairs are related to each other. Some pairs have direct correlation while some others have inverse correlation among them. Also, the amount of uptrend or down trend seen in the past few days may affect the price movement considerably as well. Also, cross pairs are normally not affected by news. We may see a momentary uptrend or downtrend but after that price usually returns back where it was before the news was released. All these factors should be studied well before trading news. If so, as you have opined, there is a very good chance of making money.
@gkintl: that is depend on the news, usually for Class 1 news such as GDP, NFP, Bank Rates, or CPI the trend will be longer, and usually changing the price even up to one month for sure, and trader around the news you must be careful not to do limit order usually traders want to open position before news but i advice open position in 30 seconds until 2 minutes after the news released to know the right trend.
I dont think so even i think that forex news is also part of forex so at time of news running at first you should concentrate about it its true but at time of trading you should concentrate only and only on trading sector.
Same like me, i will take if for all cost, my favourite are NFP, Unemployment, and GDP, some news like homesales is good too, but for trader that trade around news time it is better trade after 30 seconds until 2 minutes after the news launched because usually there is "shadow" movement in early result especially for big trader who can redirect the market.
Trading on news is very good and a trader that is a fundamental trader will increase the chances of profiting when he or she trades with news. The important thing there is to know the type of news that will have a high impact on the market. Traders who trade around news time should be able to find the difference between the high impact and low impact news.
Small or medium news impact doesn’t affect much to create reversal or retrace pressure. Traders not necessary to avoid such news. But if it high impact news, traders need to pay attention seriously. Because market will move in high range and potentially, create spikes which enabling traders to make wrong assumption regarding with the direction.
I agree with you. The traders who want to trade with the news should be able to identify the high impact news because it is this news that will have a good effect on the forex market. Better if the trader knows how to analyze with the heavy economic news like the nfp news release.
That is true, but if you want you still can trade during that news, my advice for medium news is just target the profit for 10-20 pips only, if you want so much then you won't see much movement in few hours later.
What is important is if the trader is even the type that understands news trading. It's not all who are good in trading around news time and it takes skills and experience to become a fundamental trader. Forex is a business where you would rather choose the best method for you.
During news, price jumps all over the place, not just straight up, it bounces around very quickly for 30 to 60 seconds (never the same thing twice I bet)
I'm thinking lots of market order firing off. So instead of placing a straddle with stop orders that when triggered turn into market orders where you get a bad fill.
During the last NFP, once price spiked, I dragged my "buy' script onto the chart and was filled at market. Then about 10 seconds later dragged my "sell' script onto the chart and got filled. On a 0.1 lot, made 30 bucks in 10 seconds. I tried it to see what would actually happen and it was a small lot. Interesting enough to make me think.
why not do this....
Place a line on the chart, lets say above price, we'll play the long side.
When this line is breached (price rises over the line), the EA places a limit order, thus you get filled at YOUR price and not at a crappy market order price.
This may not get filled. But it's a way to play news and control your risk.
While watching price action on news it looked like this would work but I haven't tried it. I plan to try it on a live account with a small lot.
I'm thinking lots of market order firing off. So instead of placing a straddle with stop orders that when triggered turn into market orders where you get a bad fill.
During the last NFP, once price spiked, I dragged my "buy' script onto the chart and was filled at market. Then about 10 seconds later dragged my "sell' script onto the chart and got filled. On a 0.1 lot, made 30 bucks in 10 seconds. I tried it to see what would actually happen and it was a small lot. Interesting enough to make me think.
why not do this....
Place a line on the chart, lets say above price, we'll play the long side.
When this line is breached (price rises over the line), the EA places a limit order, thus you get filled at YOUR price and not at a crappy market order price.
This may not get filled. But it's a way to play news and control your risk.
While watching price action on news it looked like this would work but I haven't tried it. I plan to try it on a live account with a small lot.
Its good if your entry price is a the right place and the right time. But chance of getting this in 10 seconds is really low. For me its better to have a stable strategy. Because if the trends goes full trends march either buy or sell you can end up getting big loses as you have an open position. But if you put SL then chance are you going to get SL than TP in a volatile trend.
News which classify as high impact lead traders to gain decent profits. However, when traders has no good knowledge, especially it regarding with fundamental, they will face problems to deal with news trading. Predict the outcome easy when traders has understanding and good knowledge regarding with method of analysis.
There are trader which prefer to trade on news time only. They are take advantage from the impact which it usually high enough. Basically, price pattern tells everything. News is just a trigger which make the price start to run. So, if want to take advantage from news, better we are analyze the price first.
From the News
-
7BForex Broker: Closed
-
Afterprime Broker: Reviews and Specifications
-
ForexVox – 30% Deposit Bonus
-
ForexVox – 20% Floating Deposit Bonus
-
ForexVox – 100% Welcome Bonus
-
ForexChief – Gold Whale Monthly Contest
-
Pacific Union – 50% Deposit Bonus
-
Pacific Union – Refer a Friend
-
Ventezo – WINtezo Monthly Contest 2023
-
Headway – Dreamway: Share a dream, make it real
