You open Forex economic calendar and check what news will be hitting he air today.
Then you choose those news that have a "high importance" mark on them and analyse the data ahead.
I compare Previous to Forecast numbers and make my mind. 3-5 minutes before news time if I think price will go up, I place a Buy Stop order, if I expect price to come down after Actual data release I place a Sell stop order.
So, by using Forecasts I'm able to anticipate the outcome.
But, there is another method I learned lately. It is based on the fact that not only I'm getting ready to benefit from market shifts created by news.
Before news thousands of individual traders as well as large banks and other Forex players line up to take advantage of price moves. Many of them don't wait till the last second when news are released, they take positions ahead relying on knowledge of fundamental indicators and own research of global economic figures.
So, I figured out, it would be good if an ordinary trader like me could know what positions are they taking: Long or Short. In other words, what percentage of traders are selling and how many are buying at the moment preceding the news.
As an example, let me show this source
http://forex-trading-signals.net/forex-today
which provides streaming data that tells just that. The web info and its Forex signals are free!
Enjoy Forex scalping!
2 comments:
Non Farm Payroll - this economic indicator has got so much strength to move currencies, I heard some traders saying they've created a separate strategies to be on top of the move when opportunity comes every month.
NFP is released on the first Friday every month at 8:30am EST.
It is a great market mover and I think every Forex trader should learn how to trade it.
NFP deserves separate attention.
It is one of the strongest movers, which is able to catch unprepared as well as prepared traders off-guard.
The best strategy with NFP is to give it a breathing room after the news and watch the main trend, which, as practice shows is not always going to be in the direction the initial outbreak after the news.
Somewhere about 10-15 minutes after NFP is just the right time to consider joining the party.
I know, it is AFTER the NFP, but it is safer as well.
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