Hi all,
On the subject of trading fundamentals before an economic announcement is made … how does one decide to take a trade before an economic announcement is made and what side the trade should be on (long or short)? What are you reading that is telling you to swing trade long or short days before an economic announcement is made? What fundamentals edge, not technicals, are you using to plan your trade that far in advance?
Thank you!
with a great deal of experience or don’t, be safe wait for the retracement.
An associate ran all the data on news events going back years. He knows the typical min-max and average before he trades that even. That’s experience.
If its a reasonably size even, Red News or certain Oranges I wait for the retracement and do very well.
Trading before the event can be very dangerous for your account. It will be better to the trader to follow the movement and not to try to predict it. Econimic Announcements can cause large price movement in any direction, that can turn in a huge loss.
There are some events-based trading systems like placing stop orders above and below of the current price just before the event, but it is quite difficult to backtest such things as most of backtesting software (like Tradingview or Forex Tester) dedicated to chart/indicator trading. At the same time, if you will find the way to backtest it, the strategy can be very profitable.