What is news trading? How does forex news trading work?
Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have access to low latency forex trading software. Sounds too complex or expensive? Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. Best of all: Forex News Gun - automated forex trading software is free for all. You find all details on Forex News Gun forum and if you want make pips easier you can find additional tools at Forex Tactical Squad.
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Forex News Gun Trade Plan
USA Existing Home Sales ⋯ 10:00am NY time (Thursday, September 22)
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| Traded pair | Expected figure | Deviation trigger | ||
| USDJPY | 5.50 (M) | ±0.40 (M) |
| Buy | USDJPY | if actual figure is or is above | 5.90 (M) | ||
| Sell | USDJPY | if actual figure is or is below | 5.10 (M) |
Expected move during first 30 minutes after the release is 30 pips or more.
Review historical charts where the same deviation of at least 0.40 (M) occurred:
USA Existing Home Sales history of charts.
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Release name in FNG client: US Existing Home Sales
Clicks: first row is for Sell USDJPY button, second one is for Buy USDJPY button:
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Diamonds Trading Signals Trade Plan
USA Existing Home Sales ⋯ 10:00am NY time (Thursday, September 22)
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| Traded currency pair | USDJPY | ||
| Initial spike duration limit | 30 seconds | ||
| Initial spike price action threshold | 12 pips | ||
| Triggering retracement percentage | 40 % | ||
| Retracement duration limit | 80 seconds | ||
| Maximum trade hold time after release | 15 minutes | ||
| Stop loss | 10 pips | ||
| Take profit | 10 pips | ||
| Maximum spread | 2 pips |
- If between 10:00:00am and 10:00:30am, so during the first 30 seconds you see USDJPY move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it doesn't take more than 80 seconds (till 10:01:20am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
- If the move either up or down was less than 12 pips during the first 30 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade.
- If by 10:15:00am, so 15 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.
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