Professional traders who often trade based on the fundamental news, usually already know what types of news will have an impact on the forex market. Global economic data, for example, can be monitored directly through the economic calendar. It can affect the trade market.
The economic condition of the United States is also very influential in the value of currencies globally. It is often regarded as important fundamental news. It should be noted that not all news releases related to economic issues have an impact on market volatility.
There are several approaches that can be done to trade based on the time of the news release. There are many traders who like to trade and make decisions when scheduled announcements on the economic calendar occur. Are you one of them?
There are also those who prefer to enter the market when conditions are not so volatile before the release of the announcement. Usually, three kinds of approaches will be used in this case. Below is a further explanation about those approaches.
Trade before the Fundamental News is Released
The traders, who want to trade in the best forex broker with calm conditions, can follow this approach. First of all, you need to adjust the time frame because a pro player will do it too. You can follow this step for this case.
Scroll down to the 5-minute chart then observe the 48 hour period before the news is released. Analyze time 48 before the news release. In doing this step, please identify and draw support resistance levels over a 48 hour period to determine the short-term range.
Another step is to do time entry. Traders can try to buy at support and short at resistance. Then, place the stop below the support and above the resistance. Targets for long trades can be set at resistance and targets for short positions can be placed at support.
Trade When the News is Released
There are 2 of the most common strategies that traders use when the fundamental news is released. These two strategies are InitialSpike Fade Strategy and News Straddle Strategy. InitialSpike Fade Strategy can be done with easy steps that you can follow.
First, choose the relevant currency pair. Make sure the headlines match the currencies you want to trade. Then, switch to the chart 5 minutes just before the news release. You must do this step correctly in order to get the maximum result.
Observe the closing of the first 5 minutes candlestick. The graphics are usually quite large. When prices approach the spike high or low, fade the movement by trading in the opposite direction. Then, place a stop at 15 pips above the highest value for short trades.
You can also place 15 pips below the lowest value for long trades. Targets can be set at two or three times the stopping distance. Do everything correctly and carefully. Don’t stop although you made a mistake because practice makes perfect.
Trading After Reporting is Released
The third step is to trade after the fundamental news is released. Maybe this is the approach that many traders do now. Traders who choose to trade after the news is released can choose a variety of strategies. What are these strategies?
One of them is a strategy to follow the ongoing market trends. If you want to do this strategy, then do a few steps below. First, determine the direction of the trend on the daily chart. It is important to check the newest trend happened.
The next step is to draw a line of support and resistance. Then, choose a forex timeframe between 1-4 hours. You can buy close support in the uptrend and close selling resistance when the trend is down. Didimax forex broker is the best broker to do it.
To support this strategy, you must use the trusted broker only, such as the Didimax. There are various complete features that you can have with the easy deposit and withdrawal process. This broker will enlarge your winning chance based on the fundamental news strategy.
