Fundamental Analysis & 1 Minute Chart
Trading in 1 minute chart after analyzing "Fundamental" news and reports is pretty interesting method.
1, We can use high leverage
2, This method not allow more than 10 pips TP
3, Read news , watch economical reports , check market open close time is strongly recommended.
We have to look 1min to daily chart but trade open in 1 minute chart just for 10 pips.
Post your ideas related to this topic.
Sometimes for some economic reports, u can bank in much more pips. Too bad my fundamental pretty weak, unable to fully utilize this.
You don't have to know anything about fundamentals to trade calendar data. And M1 charts show too much noise. M5 is (relatively) better.
Price WILL move after data release, at times even in the opposite direction of what the data release implies, which is why I would not place too much stock in economic data.
Try this: For any red data event on the FF calendar, at 5 minutes before release and using M5 chart, place a pending buy stop 15 pips away from the current price and a pending sell stop 15 pips away from current price, giving you a 30pip natural stop loss either way, assuming your broker allows "hedging".
If after the release, price takes out any of the pending stops, you can either leave the other stop as your "hedge" or close the other stop and manage the new position with new money management orders.
Just don't forget to close all stops if you ever close the position with a profit.
(And if no initial pending orders get started within say half an hour of the release, just close all pending orders, no harm done.)
The above is just a very "basic" system suggestion to illustrate that half the time (if not most times), economic data (in and of itself) is mostly BS. What matters is the SIZE of the price reaction... not the DIRECTION of the reaction.
i used some news trading EA before,
You know, news trading can be very fun and interesting most of the time, how i trade news is as follows, i will drop down to the 5 minute chart and see what was going on prior to the news event, for example if it was ranging, i would draw my "pre-news" trend lines, to define the range, then i would wait and see how the market reacts to news, if the markets fails to close, CLOSE outside of the pre-news trend lines then i know there was a knee jerk reaction and nothing much is going on, but if we close outside of the pre-news trend line, i don't jump in on the fun right away because more often than not, the market will come back, when it comes back, i draw a fib, and then trade the C ---> D leg of the fib, and thats how i trade news in a nutshell, its a very effective way to do so, and can be very profitable, i hope this helped ^^
What type news you are focusing in this time ? i mean low impact news / medium impact news / high impact news ?
© Forex Factory