Hi, I wanted to know. How can I choose whether to buy or sell based on news results? Let say, I’m trading GBPUSD. There’s several high impact news in one hour. Which one should I follow?
None. Wait for the event is over and trade what you see.
What I’m trying to say is, let say tomorrow, there’s news USD
Core Retail Sales m/m
PPI m/m
Retail Sales
Core PPI m/m
What if two of the news are bad for USD and 2 are good. And then news for GBP are bad. Should I choose sell or buy?
I hear what you’re trying to say bro but can the same be said for you.
Don’t try to pre-empt the market. Sure fire way to damage your balance. Wait until after the event (doesn’t take long, 5 mins, 10, 20 at the outside then trade what you see. See with your eyes not perceive with your mind.
I think BBB is absolutely right about this. It is pretty much impossible to decide what the market reaction is going to be until you actually see it in front of you after the event.
It is not just a question of whether news is “good” or “bad”, it depends more on how much data releases deviate from the anticipated values. Current market price will usually have already absorbed the predicted values and may react more if the actual figures are significantly different. In addition, whilst current data might be as anticipated there may also be revisions to previous data that cause a reaction.
Another issue is whether the data concerned is something that is currently important and on which the market is focussing. For example, if Central Banks are expressing concern about inflation fears then inflation data will be a priority, if its consumer spending then Retail Sales will be sensitive, if it is the economy then employment data will be focussed on, etc.
Some data releases will produce a short-lived spasm in price reaction whilst others will start a move that could continue for a day or two and so on.
The theory behind trading technical analysis of price is that the only thing that is important is to identify what the majority of participants are doing and join them. So wait until the reaction triggers a signal on whatever method you are using and go with it.
Of course, if you trade on personal analysis of economic fundamentals then none of this applies :D. …but then you wouldn’t be asking the question, I guess! 
Bob and Manxx have it right…
Here is a recent thread that you may like to read:
http://forums.babypips.com/forextown/79175-trading-news-again.html?highlight=Trading+news
Economic numbers mate. A higher than expected will impact the opposite that lower.
It’s always best to wait until the smoke clears before making a decision. The only possibility is to monitor the Weekly Economic Report and if the pair is in decent consolidation you could TRY to place a straddle order with OCTO condition, but mostly you will probably get whipsawed in both directions. Still best to wait it out.
Happy Trading