Hi All,
I’m looking for a site/book that explains the short-term relationships between economic indicators and rates; e.g., a higher than expected US GDP report is associated with an appreciating dollar.
Any ideas?
Many thanks,
Joe
In ac-markets site there are published the forex technical indicators, what they represent and how to read their results.
Forex indicators | Forex signals
regards!
Not to toss a wet blanket on anyone’s education here, but there’s no such thing as a guide to short-term market reactions to news events. This is a major issue new traders have. The markets often do not move as they would be expected to move (data good = price up, for example) and it blows people’s minds when it happens.
The reality is that the market moves based on how people are positioned ahead of a data release or news item. That can mean good news is sold and bad news is bought because traders were anticipating. And of course just when you think the market is set up for some kind of contrary move it will go ahead and take off in the “right” direction on you. This is why news trading is so challenging.
You are very right about that, newbies shouldn�t trade news, but they do have to know what the indicators are and understand them, since they are part of the forex market and the currency pairs�
Of course news trading is crazy! The market is up to its highest in volatility; only experienced traders (or courageous ones) should trade news.
Do you trade news rhodytrader?
Regards!
Nope. Can’t remember ever having done so (intentionally, anyway) and can’t see myself ever doing so.
Why wouldn�t you consider trading during news?
I totally understand the risk, but don�t you think there are times when the potential profit is worth trying?
Because I’ve seen too times when the market when exactly opposite of what one would have expected, or started first the “right” way then turned the “wrong” way (or vice versa). It’s a crap shoot and I prefer not to do little more than gamble when I trade.
Good point you make, unless you�ve tried in your mind hehe. Here in babypips is a course for trading news� but I don�t think that is sth with an established method, it depends completely on the moment, don�t you think?
Good trading
At news time spreads can widen - sometimes dramatically. The order becomes very expensive when you are trying to enter.
During EIA inventory news this morning @10:30am EDT the spread for Crude Oil future trades jumped from five pips to 34 pips.
Also, I noticed slippage in the USDCAD pair at this particular time which rarely happens in my experience because the USDCAD pair is highly liquid.
I haven�t trade usd/cad for a while now so I didn�t notice�.
But for instance, today we had the opportunity of sell gbp usd and I made 60 pips in about minutes! The spreads didn�t wide today, and the trading section was great.
I think it depends on the broker and when you enter, I agree trading news is a little bit more challenging, but definitely worth trying and an important part of our trading life.