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  1. #1
    Active Member Alex Froot's Avatar

    medium to low impact news releases. !!!

    hi

    during the times of the medium to low impact news releases shall i stop trading or is it fine to trade during these events.

    thank you


    Last edited by Alex Froot; 10-16-2015 at 09:12 AM.

  2. #2
    Legendry Member Okane's Avatar
    You can ignore Low impact. I don't even choose to show them in my
    calendar. As for medium, you need to read the description for each news.
    Don't know which calendar you are watching but I recommend Forexfactory.com for that:

    Here is an example from yesterdays news trade:

    Click image for larger version. 

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    In this scenario, both the high impact (red) and the Medium (orange) were good for the US dollar according
    to the description for each announcement. So I took a KIKO trade going low on EUR/USD.
    Click image for larger version. 

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  4. #3
    Active Member Alex Froot's Avatar
    thanks for the tip Okane, with the the high impact is it strictly no trading for about 30mins after?.

  5. #4
    Legendry Member Okane's Avatar
    Quote Originally Posted by Alex Froot View Post
    thanks for the tip Okane, with the the high impact is it strictly no trading for about 30mins after?.
    Not really, I mean in my case I traded the news itself.
    However, if you want to avoid the news you have to watch the market
    carefully, is not just about "oh so I waited 30 min now I can trade". Trading
    doesn't work like that. There are many factors.
    Another example is a couple days ago when I first took a trade with the news
    and one AFTER the news was "done" a so called retracement. It's hard for newbies to
    see it, even for advanced traders. An effect from a news can hold on for a day or two, even weeks!

    A few signs that news might be losing its effect can be as follows:
    - Price is beginning to slow down, no more huge candle jumps or drops.
    - A significant Support/resistance is being reached - You must be good at drawing reliable S/R lines.
    - You can observe that your indicators indicate Oversold or overbought on several timeframes
    (the more the better specially the higher timeframes being in agreement with lower ones)
    - Prices was trending heavily before the news, therefore big chance for retracement = correction if news
    made price to go against the main trend.

    So in conclusion, the "wait 30 minutes and go for it-rule" is just an inaccurate way of getting "around" this intricate situation.
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  6. #5
    Moderator Kolyo's Avatar
    Okane is right. Low impact news almost 99% of the time don’t have measurable impact at all. With medium impact we should be more careful because they produce volatility from time to time. I don’t have a rule to not trade on high impact news, but I never open a significant trade before the news release. Always wait to read the actual release and to see the initial price action. Only after that if you are more risk averse you can trade after the news. If you are pure technical trader better to avoid all high impact news as they very often break the PA patterns.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  7. #6
    Active Member Alex Froot's Avatar
    For example my strategy is the simple balanced system which does not require a trend or s/r lines, after some medium impact news I noticed price action was moving sideways and not producing any signals.
    Last edited by Alex Froot; 10-17-2015 at 01:31 AM.

  8. #7
    Legendry Member Okane's Avatar
    Quote Originally Posted by Alex Froot View Post
    For example my strategy is the simple balanced system which does not require a trend or s/r lines, after some medium impact news I noticed price action was moving sideways and not producing any signals.
    Hate to bring it to you. The market does not care about what your strategy likes or not...
    I think you misunderstood my explanation for why the 30 min rule is not something written in stone.

    Well, yes, exactly... so if the market is moving sideways and not producing anything then you have already
    answered your own questions "should I trade after 30 minutes?" no cause it depends on the market, not your strategy.
    Is it moving sideways and volatility is low, ok then maybe you shouldn't trade. Anyway, I hope you read the points
    I wrote and really digest them. It will help in due time when you understand the markets/assets better.
    Let me know when you have more questions!
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  9. #8
    Specialist Member Million Dollar Baby's Avatar
    Low impact news = Ignore
    Medium Impact News to High Impact News = If you are not news trader then it is better to stay away during news hours. It is not possible to tell how much time it would take market to absorb news impact but usually the impact is very quick. So you have to observe market to see if it is now safe for you to enter. Market movement tells if it is back to normal or not yet.

  10. #9
    Active Member Alex Froot's Avatar
    Quote Originally Posted by Million Dollar Baby View Post
    Low impact news = Ignore
    Medium Impact News to High Impact News = If you are not news trader then it is better to stay away during news hours. It is not possible to tell how much time it would take market to absorb news impact but usually the impact is very quick. So you have to observe market to see if it is now safe for you to enter. Market movement tells if it is back to normal or not yet.
    Thank you for the knowledge.

  11. #10
    Active Member Alex Froot's Avatar
    Quote Originally Posted by Okane View Post
    Hate to bring it to you. The market does not care about what your strategy likes or not...
    I think you misunderstood my explanation for why the 30 min rule is not something written in stone.

    Well, yes, exactly... so if the market is moving sideways and not producing anything then you have already
    answered your own questions "should I trade after 30 minutes?" no cause it depends on the market, not your strategy.
    Is it moving sideways and volatility is low, ok then maybe you shouldn't trade. Anyway, I hope you read the points
    I wrote and really digest them. It will help in due time when you understand the markets/assets better.
    Let me know when you have more questions!
    I am grateful for your reply and I am slowly learning fundamentals.

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