Making Pips With Forex News
Forex markets are unlike stock markets. Currency markets are open 24/5 except on the weekends. Continuous price action takes place all day in the currency markets. Do you know this that more than 90% of people trading forex are speculators?
Currency markets react violently to the release of economic and socio political news. Currency rates can shoot up or down violently for a few minutes to a few hours before the market absorbs the impact of the news.
Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.
These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.
NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.
Markets will mostly stabilize within a few hours after the release of fundamental news unless it is of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Enter both buy and sell orders on for example EUR/USD at 10 pips above and below the price of EUR/USD just five minutes before the announcement of NFP figures.
Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.
Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?
Suppose EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. Be careful, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23200
Currency markets react violently to the release of economic and socio political news. Currency rates can shoot up or down violently for a few minutes to a few hours before the market absorbs the impact of the news.
Fundamental economic news like NFP figures, the housing sales number, FOMC meeting etc all are released at a known time. Google Fundamental News and you will see lots of sites that provide this information.
These sites will give you the day and time when a major economic announcement is going to be made. Non Form Payroll (NFP) figures have recently become very important for USD pairs especially after the start of the recession.
NFP figures are released at 8:30 AM EST on the first Friday of each month. Currency pairs like EUR/USD become very violent just after the release of these figures. EUR/USD can shoot up sometime by 50-100 pips in 5-10 minutes.
Markets will mostly stabilize within a few hours after the release of fundamental news unless it is of such a fundamental nature to form a new trend in the market.
Forex news release trading is best for those traders who like a lot of action within few minutes. Here is one strategy described in short that you can use.
Enter both buy and sell orders on for example EUR/USD at 10 pips above and below the price of EUR/USD just five minutes before the announcement of NFP figures.
Place stop loss of 10 pips for both the orders. Place take profit of 40 pips on both orders. When the NFP figures are announced, EUR/USD will either shoot up or down.
Suppose it goes up by 10 pips, buy order will be triggered. Suppose EUR/USD jumps by 60 pips. Your position will be closed at 50 pips when you have reached take profit of 40 pips. Isnt it nice you made 40 pips in a few minutes?
Suppose EUR/USD goes down by 10 pips, the sell order will be triggered and you will still make 40 pips. Be careful, sometimes the markets have a tendency to whipsaw. Practice this on your demo account first and make ten successful trades before going live. - 23200
About the Author:
Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading; stocks and forex. Download Forex Scalping Cheat Sheets. Discover The Best Forex Signal Service! Read about Trend Forex System.
posted by X - Men @ 2:06 AM
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