Hi, I’m New to trading and I realised gold have plunge to 1200 level in A SINGLE candle stick. There aren’t any major good news and I wonder why did it happen this way? Sometimes i just cant understand the market movement and why did it move this way. sometimes it seems irrational to me.
I notice gbp/usd went up slightly but the sentiment were so bearish then it plunge downwards nearing the exit from EU. How does one actually improve its skills on reading markets?
I’m currently practicing on a demo account for my trade plans.
Hi @ceejay96, I presume what happened with both pairs was the NFP News release out of the USA ~ 45 min ago. News releases will fluctuate the markets dramatically and the NFP is one of the biggest volatility events.
As a new trader, it would be advisable to be out of the HIGH news pairs when news is released. Below is a Youtube video which explains the effect news has on trading the FX Markets.
Below is a link to a News Release Calendar which once set to your time zone will give you warning of up coming news events a week or so in advance and their importance to the FX Markets.
https://www.dailyfx.com/calendar
Any news releases market with a Red High Importance add volatility to the corresponding pairs as well as any correlated pairs.
Hope this is of major help with your issue.
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