Hi everyone. I usually trade the news in either direction…I place my entry at the side I get a breakout first. But I realize that many a times…I usually get a reversal almost immediately after my entry that kicks me outta the market. Am considering staying out of the market completely during high volatility news. Do u think that’s a good idea? Or is there a better way of trading the news volatility?
First off,if u want to trade using fundamental analysis (news),then u need information on which news event carries weight or not.
Using an economic calendar from any site with impact level of news to be released would help alot.
Most people choose not to trade during high volatility news events while others with already open positions close them off.
But until u master how to trade news volatility,I would consider watching from the sidelines and practicing on demo while on that.
Cheers.
Breakout of what?
Hmmm…I appreciate your opinion, I know the volatile news and those that aren’t… especially since babypips has helped a lot in the classification. But I have this feelings that there is more to trading news. Like EURUSD and GBPUSD for instance. An economy depicting good economy for US might cause a fall in EURUSD pair but with little or no effect on GBPUSD. How do I really determine which pairs would be affected more and which ones wont be?
Breakout or reversal or continuation. Or what are you trying to imply exactly
You said:
A breakout of what specifically? What would price be breaking out of? How are you determining a breakout has occurred?
Exactly what I was trying to explain…watching the two pairs during news events would help u.
Or maybe u aren’t putting ur question in d right way for me to understand.
Another thing is knowing a high volatility news is one thing and knowing which pairs it would affect is another thing.
But News events from US affect EU more and doesn’t affect GU atimes.
Alright. Thanks for the hint. That was helpful
I understand the importance of news in the forex market. But it is not the only thing that I base my decisions on. I consider other factors also before deciding on anything. As a trader yourself, you will have to analyse the market before you make a decision on the basis of news that’s circulating.