Trading according to the news is one of the commonly used trading methods. The question many ask is the easy way to trade the news and is it simple. First off, I must make it loud and clear that trading on reports isnt as straightforward as it may seem. Well, I should displease you trading stories releases needs a large amount of talents. The basic concept behind trading stories releases is to catch robust changes in price ( so called breakouts ). Your agenda is to catch the volatility momentum at the right time and use it so long as it lasts ( the range is awfully fuzzy, basically. If you’re raising your eye brows, let me quickly answer your query.
Indicators such as Stochastics and Moving Averages isnt precisely what Id call revolutionary. But Wave59 has a large range of tools that cant be found anyplace else. As an example, they use astrology indicators, like an ephemeris and many others. Now, regardless of what your opinion is on the topic, there’s definitely and interesting relationship between the history of price action & movement with the astrological signs. They might be the most noted for coming up with the Fibonnacci Vortex. Its this awesome pattern letting you pick with great accuracy the of low and high swing points towards the pip, many times. It does leave a lot of room for interpretation. This is likely often due to uniqueness of the tools, which folk are just not used to. Now, the currency pairs which are critical in reports trading are : EUR / $ $ / JPY AUD / Dollars GBP / JPY EUR / CHF CHF / JPY You can follow reports releases thru business calendar. If you choose to become a stories trader you’ll have to follow the industrial releases terribly closely.
The main topics that must be followed are the IR and FOMC rate choices, shop sales figures, inflation indicators, unemployment information, economic production, business, producing surveys the countrys trade balance ( US Treasuries ). That way you may use the breakout indicators as well as the news releases and have a higher chance to profit. Futures clearing