To successfully trade two or three pairs based on price action alone with no news other than awareness of the economic calendar?
I guess not.
Yes. This is called technical analysis.
Yes it is possible. Basically price action says you don’t need anything besides the price. But combining it news volatility can help you to avoid times of greater unpredictability, like during news releases. So I would pay attention to events in the calendar. If you want to hear my suggestion about currency pairs, then choose EURUSD, USDJPY and EURGBP in my view they are more trendy.
Thanks man. I’m a Cable guy at heart but I also follow Fiber closely for obvious reasons. As for the third I was looking at either EURGBP or GBPJPY due to my timezone. I want to master (as best I can) one market before moving onto others. I asked this question because the amount of news/emails/newsletters/twitter I was consuming before even looking at a chart pre-open was bordering on the ridiculous. I have to keep on reminding myself to keep things simple. So, a quick scan of the EconCal and the daily newsquawk a.m post should be enough. Thanks again.
Technical analysis is a simple yet effective approach to market analysis, so it is definitely for you. All the more so because today you can try anything on a demo, which will save you some extra costs…
I think that today there are a huge number of strategies and approaches that will help you operate in the market in the most efficient way.
So I wish you good luck in your search for your ideal solutions!
News creates volatility in the Forex market. If you are using price action, you can go without looking at the economic calendar, but if you have an idea about the news, it is much better. Because the price movement in the market increases a lot during the news, one has to have an idea about the news to secure a trade.
I tend to agree with you, Kathlyn. I was wasting way too much time snuffling up every piece of news before the open as I could. I’ve now learned that to have a “handle” on the news, eg know the basics of main market-moving stories is more than sufficient. I just read a pre open briefing from newsquawk which covers the Asia session and important items for the day ahead and “5 things to know” daily email from Bloomberg and I’m good. Most stuff is already priced in anyway.
The fewer pairs you work within trading, the better for you. I have also seen many traders who work with only one pair. To make a profit in trading, it is necessary to have a combination with a pair. The better the combination, the better the rewards for trading.
If your trading intra day some of the larger events will cause whipsaw losses - not as bad end of day.
If your scalping then you very much need to at least keep an eye on the calendar - and maybe step aside.
Like I said end of day I think you can be pretty much oblivious to news - except for major things like the brexit result.
Can you expand on what you mean by combination? Do you mean an affinity with a pair or a combination of news and price action?
Thanks, John. Vast majority of my trading is intra-week.