Forex advisor
How to trade the news?

Forex advisor recommendations:

25-90 pip movement in just minutes (Pip - The smallest increment of change in a foreign currency price, either up or down) often occur at the moment of news release each week or even day.

For news release look the Economic calendar.

Important news release simply cause big moves on the market.

But not every news announcement has an equal value. The best announcements are regarding:

● Gross Domestic Product
● Employment Growth
● Interest Rate decisions
● Inflation reports and
● Trade Balance.

But do not fall in the deep trap to follow blindly these news announcements, because this is actually a very risky type of trading.

The Forex advice is to wait for proper trading signals based on indicators. Do not hurry and don`t just guess which way the market will go! It can last up to half an hour to get the right signal. Of course, you can wait for it also only for a few minutes. Now you have your best entry point. And always remember that the market moves not so much by what the news says but by the reaction of the traders to the news.

It is a good thing to wait for a market to be quiet for a couple of hours. Now the market is waiting for news and after the news announcement it will start to move in the direction the traders trade it.

You can also wait until the spreads come back to normal. Now the market is "much more prone to reveal" which direction it will take. Now try to trade with the direction the market decides to go, with the minimum guess-work.

Every good Forex advisor should warn you about this: do not make your pending stop loss orders to tight. Because of the spreads widening you can find yourself out of the market with a big loss. A 10 pip stop loss and the spread widening to 12 is too tight, for example.

Check the direction of the trend on the currency pair you are going to trade on a 4 hour chart. To get a general direction draw a line from left to the right of the screen. Once the direction of the trend is determined the news may be traded in the direction of the trend. This will be a less risky trade. See below:

Forex

Things happen very quickly when the news are announced. It easily happens and it is a normal thing that you can not be filled until some more lots become available (there are too many people buying at this exact moment). The automated forex trading system is more capable in this regard.

Keep in mind that every strategy takes time and practice.To become good you will need to develop a sixth sense for the excellent use of any indicator.