Trading strategy in forex important news

Trading strategy in forex important news - designed specifically for trading on Forex news with the least possible risk. It can be used only when entering a very important news, such as the U.S. economy, the number of jobs created in the U.S. and interest rate decisions. Although almost all currency pairs react to such news, the best results show dollar currency pairs.

Features

• Trade will have a fundamental basis.
• Not difficult to start trading.
• A high percentage of success.
• Important news out very often.
• High volatility and enhanced spreads during news outlets.
  

How to trade?

1. Select an important news release which will affect the forex pairs.
2. For EUR / USD, I recommend: U.S. GDP, the number of jobs per month, a decision on U.S. interest rates and the euro zone and reports on budget deficits in the U.S..
3. Enter into long and short positions in about 30 minutes before the release (to protect against slippage and spreads too wide).
4. Stop-loss for long positions, set around a local minimum of the last hour or two.
5. Stop-loss for short positions, set around a local maximum of the last hour or two.
6. Take-profit for both positions is better to set a level at least twice the stop-loss. I recommend setting the level of 3 * SL.
7. Do not forget to cancel the orders did not work after the news.
   

Example

An example illustrates the behavior of currency pair EUR / USD at M15 timeframe during the announcement of the decision on interest rates in the U.S. 23rd September 2009 both the level of stop-loss are clearly visible in this situation. Conservative take-profit is achieved without any problems (but only for a long position, he does work as a short position is closed by stop-loss).

You can trade on such news and the pending orders for greater profit potential (by setting the entry points for stop-loss the opposite position.) But it is more risky.

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.