Hello everyone. I’ve been working on my trading plan for months, and i have norrowed it down to the news volatility that is confusing me. I feel most comfortable with a 1H or 4H TF, but i’m not sure how to approach the spikes and the less volatile news.For an example, if i’m in a trade following the trend, and it’s coming up to a news release that’s usually 100+ pips. Is it best to hedge and place SL, or just close the trade?
Thank you for taking the time to read my post.
Happy trading
the main idea is when you at state gaining pips, next challenge is how to keep it. I thought it’s most powerfull suggestion got from my 1st year with babypips school :). and it’s still a proper trading mindset for last.
in your case you can simply close it, 100 pips are way much better than -100 pips. logical decision :).
method with hedge, it required a proper plan even before the entry executed. plan to hedge when the order are active often confusing especially when we not prepared with predefined hedging plan.
stop loss is a must to placed, unless you’re ready of any consequences for not having one.
another method would trailing stop, or locking profit by moving your stop loss at specific price range movement based on your entry level.
happy green hunting.
You can manage the trade in various ways.
Generally speaking overtime you will start to realise which news brings about the most volatility and you can take prior action.
Trading the news is extremely difficult for several reasons which I will not go in to.
In your case it looks as though you may be using fairly wide stops if the smallest time frame you look at is the 1 hour. If this is the case you can be less cautious about certain news events than say a scalper would be off a 5 min chart.
If you are concerned about spikes stopping you out then a simple approach would be if you are not in a trade x amount of time before the news do not enter a position. If you are in a trade and it is break even or at a loss close the trade. If it is x amount of profit maybe leave the trade open, move stop to break even or close the trade for a profit.
As for hedging personally I would not want to complicate things purely because of news but it could be an option if you wanted to try and reduce your risk.
Yes i couldn’t agree more. I got the hedge idea from the babypips school. But i just realized hedging with a stop is the same as a trailing stop in a sense. So i may as well save the spread cost. Thank you so much for your input.:53:
Yes i use large stops, but low risk money management. Thank you for your response, you have given me a few things to think about. Thank you so much.
Happy Trading
you’re welcome. sometimes it’s irritating for not trying something new, some method we don’t know about until we tried directly. perhaps first step after finish with fx knowledge learning, a challenge to define what traders type we are. a scalper, day trader or swing trader, you may found any other traders type around but at general it only classify into those 3. people sometimes just confusing with their own reading material, in the end they try all these trader type with many different market approach ( trading strategies). a hybrid one ( would said the confuse one), I knew exactly how it feel, no less any reason because once I’m one of them :). in short, their trade sometimes do scalp exit target but by looking at daily support, fundamental news etc, which practically used for longer term trading method.
I think you can even profit from it with opposite trade to hedge your long-term exposure. SL works but with some slippage during news so keep that in mind too…
If you still can’t make good analysis with fundamental analysis but you want to trade with news so you can try to use trapping news strategy but you need to know how it works and how to use it. Trapping news can give profits although you don’t know the tendency of price movement but you should set SL and TP in strategic place because it is possible if your position (buy and sell stop) are executed and both of your SL are hitted.
This will definitely take practice. I think i’ll trade the 4H for now till i get more familiar with what i’m comfortable with. That way i can keep my risk down. Thank you all.
yeah indeed, wise man should take their first investment with education. 4H TF are good way to start, a learning material related to major support-resistance would be good.
are you referring daily pivot strategy ? from my past experience h4 with daily pivot, SR level, not working good for me. thus level sometimes got breached nearly at the end of trading day, and then next trading day we already had new SR level as the current entries still at small pips gain.
use h4 for fibo drawing (weekly one, separator at h4 TF), many traders are easily draw fibo level, but sometimes they dont know where to put both major line. and I dont suggest with daily pivot strategies, it;s more like price level, major suport resistance from past market movement. mostly I draw these line at daily time frame.
I once rely on pivot indicator, but at real practice the s3,or r3 level are easly breach. main reason may because the previos day range are to low, that’s the next day piv,SR leve are quite narrow.
Thank 's for the lead. should we use those three lines as entry level during volatile market movement ?
talking about price level, it should related to price action trading strategies. and how come a weekly Fibo could help much with my entry, I think it’s too wide. one think I willing to clarify at which fibo level I should start my trade. well traders had their own style of how to treat Fibonacci line.