Economic news Forex
Economic news Forex is to be discussed in today's article. Every trader knows how famously jumps in the price of important news, which implies a good profit with the right approach. Yes, not all events in the world economy and lead to high volatility of a particular currency pair. But if the news is really important or real value of the economic indicator does not coincide with the forecast - hold on, will storm!
For earnings news outlet, we need economic calendar Forex trader and profitable strategy. Perseverance and self-control are welcome.
Why is the price move?
Why during (and shortly after) to yield important news is often seen as the price jumps up and down or to one side? The explanation is simple. To begin with, the participants world exchanges (currency, stock, commodity) watching economic news: speeches of politicians, the results of meetings of committees and central banks, changes in interest rates, some statistics for some sectors of the economy, etc. All these news have some effect on the value of assets (currency, gold, etc.). If the news is good for the asset, it is logical that the asset gets a boost up the cost. For example, the interest rate for the U.S. dollar decreased by 0.25%. This means that now the U.S. central bank can lend to other U.S. banks at a small percentage. Those, in turn, be able to provide loans to small and medium-sized businesses, for example, on better terms than previously. The benefit to the economy is obvious, then, is worth waiting for the growth of the dollar.
Also, many currency (assets) correlated. If rising U.S. dollar, gold and silver are falling in price. If the dollar falls, the euro and the British pound may strengthen. This is not always, but often enough to remember and use this fact.
Proceed directly to the process of trade on economic news Forex. For automatic operation, use the best ea for mt4 on the news.
Economic news Forex - how to make
There are 3 ways to make a profit at the output of important economic indicators:
1. position opening in the direction of the pulse.
2. forecast and market entry directly before the news.
3. use pending orders in both directions.
Detail. Using the method number 1, we monitor news releases. Once published news, watch the reaction of the crowd and enter the first pulse in the direction - either up or down. Be sure to set a stop loss, the amount of which will depend on the currency pair (for example, for the GBP/USD 10-15 points). Take Profit is not our position to achieve profits rose.
Method number 2 is more complicated because we have to make a prediction yourself. To do this, collect information and opinions respected analysts. Sometimes good economic calendar, you can just glance that experts predict and go on the basis of these data. Positive outlook - buy, negative - sell.
The easiest way to trade on the news - a way to number 3. Forecasts do not, but only exhibit pending orders to buy (above the current price) and sales (below the current prices) for 5-10 minutes before going economic news Forex. The expectation is that because of the high volatility price breaks one or two of these pending orders and we get a profit. Take Profit can not stand, closing the transaction manually, or vice versa, to expose. Stop loss is required. Dimensions of stop orders are individual for each currency pair.
Features trading during important news
Of course, during the release of economic news Forex broker will push spreads, and enter into a position may be difficult due to excessive volatility. Sometimes it may slip and cancel pending orders. This is solved by choosing a reliable broker and accuracy of the trader. Look for well-known and established companies - Forex4you or Alpari.
We strongly recommend to practice on a demo account or a cent before trading for real. Trading the news is characterized by high volatility.
Successful trade on news and profit you!
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