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!
