News Trading Strategy | How To Trade With Economic News

Time Frame        : 15Min & H4 for S/R Lines
Currency              : Any
Author                  : Universal

Market Session : Any

Indicators
None on Mt4
Currency Strength Meter from https://ift.tt/1lBDeab

What is News Trading?

Simply, Trade In Foreign Exchange Market with the Economic events, using the economic calendar, currency strength, current inflation, and the price charts is News trading.

The Different Between Fundamental Trading and The News Trading

Don’t imagine fundamental trading the same as news trading. When news comes and we trade with current news result, that is news trading.Also in fundamental trading means, we trade with that long effect on a bunch of News using past and current news results.

On news trading, we are a focus on just one news. But on fundamental trading, we need to focus all past and upcoming news effects. We need to compare all those news including other Political and Geopolitical results.

Why we should Trade with news?

We can get a big profit within a few Seconds. Because the market moves strongly when strong news release times.

Why Traders Avoid Trade with News?

   Many bankers Do trade when strong news times as small traders like you and me. So bankers trying to hunt the Stop Loss. So you need to Place a Good Stop Lossto your Trade.

How to Prepare for News Trading?

Get ready before minimum 10 minutes before a strong news release. If you are going to trade on United States Dollar news, first of all, you need to focus on currency strength, Support and resistance levels, and inflation targets on US dollar currency
Find Currency Strength from https://ift.tt/1lBDeab
What we need to do before news release on forex to trade
  • Try to use the 15 minutes to 1 Hour timeframes to draw support and resistance levels.
  • Find currency strength and keep the strongest and weakest currency pairs on your platform

How To Choose best Currency Pair To Trade with News?

For an example, you are going to trade on united states dollar news, and at that time EURO Currency is Weakest and the Japanese Yen is Strongest, then you need to keep EURO/USDand USD/JPY charts on your platform.

The Concept of the News Trading Strategy.

For example:-
The United States Dollar, and the final News result,

  • If the United States already Completed its inflation targets, and If the United States News Was Strong. Then the news effect will give you more big money when buying the dollar against the weakest currency?
Then You Can buy EUR/USD Currency Pair.
  • If united states were completed their inflation targets, and if the actual news results are weak. Then, the news effect will give you a little bit of money when buying the dollar against the weakest currency.
It’s good to leave USD/JPY buy trade.
You must place your stop loss below the Support and Resistance zone.

  • If united states are unable to complete their inflation targets, and if the actual news result is Strong. Then, the news effect will give you a little bit of money when selling the dollar against the weakest currency.

 

It’s good to leave EUR/USD buy trade.
  • If united states are unable to complete their inflation targets, and if the actual news result is Weak. Then, the news effect will give you a Big amount of money when selling the dollar against the weakest currency.
You Can buy USD/JPY Currency Pair.

You must place your stop loss below the Support and Resistance zone.


Do not place any pending order like a gambler. Do trade using the right tools like a Trader

 

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