When these news come out with their figures or numbers, the currency market responds to these so if you like to trade news announcement, you may like to try this strategy. You let the initial market reaction take its course but you are looking for a signal to enter when the market reverses temporarily allowing you to get a good entry.
For example, the Reserve bank of Australia announces an interest rate increase from 3 to 3. But with this system, you are not jumping in the initial rush.
You also do not trade the breakouts.
How to Trade the News--A Trading Strategy
Where to get the forex news and dates they are scheduled to be released? Over at forexfactory. A few seconds after the news is released, refresh the forexfactory page so that news strategy trading by will see the figure s of the news.
For A Buy setup, if the news is good and currency shoots up, you will see the 1 minute candlesticks making new highs and higher low. You buy signal will be when a candlestick breaks the highs of the previous candlestick.
You immediately buy at market price. Set your stop loss at 15 pips and set your take profit target at 45 pips 3 times what your risked.
Open a demo account 4. Day trading strategy Day trading or intra-day trading is suitable for traders that would like to actively trade in the daytime, generally as a full time profession. Day traders take advantage of price fluctuations in-between the market open and close hours. Day traders often hold multiple positions open in a day, but do not leave positions open overnight in order to minimise the risk of overnight market volatility.