Hello all, I want to make adjustment in my trading system, I want to avoid trading around news realise period.
I want to know how long I have to wait before opening a trade after a MEDIUM IMPACT NEWS release, and i also want to know when I need to close an open trade before a MEDIUM IMPACT NEWS release.
As for HIGH IMPACT NEWS release for a particular currency, I just avoid trading that currency for the whole day.
I also want to ask if it is necessary for me to pay any attention to low impact news.
I use this site for my news advance advice.
If you sign you for a free account you can filter the news buy color and other areas of non interest. I only maintain the Reds and oranges. While most of the oranges are not big movers some are.
To avoid news almost 100 I would suggest stop trading 1 hour before and after.
In the case of really huge red news maybe a few hours before and sometimes even a day later.
@midwest, by oranges, you mean blue(medium impact news).
Do you really think avoiding trading one hour after a MEDIUM news release is safe?
Yes, I do, I trade the news, mostly the retracements but when in question on a moderate news release even less time is safe. When the price action is back to the trend is the pair meets my requirements I’m in the trade.
Trading times can greatly determine your success in the forex market. You must ensure that your entry and exit points are as far as possible with the times of major news releases. To be safe, just avoid news, both major and low-impact news. It is always safer that way
I don’t see significant impact on H1 charts that I’m currently using from low impact news events.
If the market’s reaction to the news does not match your expectations, I would suggest you to refrain from going against the markets. Just follow the market trends and wait for strong signals. Don’t rush!
I have found no impact of news on price. Any fluctuations in price after a news event conforms to movements expected by price action analysis. Banks use news events to accelerate the market in order to position it where they wanted it go all along.
The exceptions are the truly major events like Brexit, the Japanese tsunami and the unpegging of the Swiss franc. These events truly shook the market.
Having said that, it is easy to get caught on the wrong side of the market on major news days. NFP and FOMC come to mind.
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Only unpredictable events significantly affect the price, I would even say force majeure. In my opinion, large market participants in 9 out of 10 cases know the values ​​of indicators in advance. Therefore, events that may affect quotes have long been included in the price. You can even conduct an experiment, after the release of important news, see how the price behaved two weeks before the start of this event, and you will find a lot of interesting things for yourself.
I mostly agree. Most bad news in forex comes from downtrends, most good news comes out of uptrends. Very rarely does news suddenly reverse a trend. Its not the same when it comes time for financial results from individual companies but that’s one of the reasons - which traders sometimes forget - why we are trading forex and not Apple or BP.
this is how, alert 15m before high impact news, enough time to close trades or set BE etc
News reader.ex4 (103.7 KB)
It’s impossible adjustment, because it depends on market expectations and news “surprise” (deviation from expectations). Sometimes NFP can pass unnoticed but in other time some PMI report can shock the market. It really varies so basically you will only add confusion to your system.
Depends on the broker, I think. From my experience it starts around 2-3 minutes before the news and ends 2-3 minutes after.
To be safe, manage your trades 20 mins earlier, sometimes news hit you like a wave wiping everything out.
Trading news is harder than you might think. Why? The primary reason is volatility. You can be making the right move but end up being stopped out or the market may simply not have the momentum to sustain the move.
Yup. This is exactly why I avoid trading the news but mostly just the big ones. I still get caught in the middle of those that aren’t scheduled or those that require you to pay attention to current events.