I have recently switched to the higher time frame, 4 hour charts and i am trading trendlines. This gives me great trading opportunities and better chance to bag more pips but, i find that sometimes news gets in the way of my trading. When i traded lower time frames i would just not trade during the news releases, but obviously on higher time frame you can’t be so picky, or can i? How do i get around this issue?
If you’re trading normal support and resistence i suppose news wont effect your trades so much maybe, more so because of the s&r being zones more so than actual trendlines, and if news makes a trendline appear broken i have to close the trade. :34:
I suppose it’s difficult though if you’re trading the bounce on a trendline, everything says a bullish trend and then BAM! news comes in and your trendline is broken.
You can’t do anything. News is news. Hard to predict the way. Even a positive news on EU may sink the pair. Better to close the open trades before news or expand the stop loss levels within the maximum risk %.
I trade on H4 charts myself. Even though I am aware of news releases, if I see a setup that fits my trading criteria, I will still take the trade. If the news releases causes the price to spike and take out my SL, then so be it. Because the news release can also easily cause the price to spike and hit my TP. It works both ways.
I will usually trade those currency pairs that are showing strong trend. And I give lots of space for my SL. I use ATR(14) as a guide for SL and TP placement. My SL can be 3x ATR and my TP can be 2x ATR.
By trading on H4, choosing to trade trending market and having TP that is less than SL, I am giving my trades as high a probability to win as possible.
If you do not want to be affected by news just close your position before news release or have a plan to mange trades in any situation. Market changes every time ,you have to change according to it to your positions so that you will not suffer from bad effects.
Please excuse my asking (I mean no harm by it) but was it really worth bumping a thread in which the previous post was made in 2013, to point this out, when there are so many recent/current discussions available, of exactly the same subject? :13:
Sometimes I have a really hard time trading the news. I seem to learn and lose it simultaneously and it kind of messes me up since don’t like holding on to trades for long. Is there an easier way and sure way to do this?
Trading the news is a bit hit or miss for me. Sometimes news that should send a pair higher suddenly causes a mass shortathon.
Around major news, I widen stops (assuming I have reason to remain in the trade), otherwise I will close out if I think things will get majorly choppy.
Intra-day and scalping time frames must be like riding a surfboard with no hands during news releases.
I don’t trade news either, as I find the results of such events too unpredictable most of the time. If I trade on the higher time frames I check the Forex calendar at the beginning of every week to see when the high-impact news will be coming out and for which currency pairs, and I plan my trading accordingly, closing positions before the news come out.
