Do you close trades before important news on higher time frame?
... On higher timeframes?
When you have a trade based off the 4 hour charts, do you just let your trades automatically go through the motions when news hits? I'd assume it would be difficult to close every trade with the amount of important news which effects the markets etc; wouldn't it? When I say news, I'm also only talking about the red events on the calander.
In the end all calculations and forecasts that are made Pre - release just tell you the more probable outcome just like your technical analysis would.
You could create an EA on MT4 for example to close out all trades before the news and optionally re-open them after I think.
Hope this clears some up for you and if someone thinks I am wrong then feel free to add the correct information.
Yes, I do! In addition, during high voltage news session I like to trade based on my news trading knowledge and experience! By the way, I have a pending order strategy for NFP news trading, actually every specific news session has particular characteristic, so I donít use any general strategy for news trading! Yes, news events offer us quick profit but only expert traders can do so!
When i open trades based on the 4h time frame or higher, i am in this trade for at least a few day's up until a few weeks, so it would be impossible to close my positions for every news release.
It is important to analyze fundamental bias before opening the trade, definitely on longer time frames.
News releases only impact short time frames, long term trends rarely change by just one news release.
Thanks for the inputs. Since you are a swing trader and in the trade for few days and any news release volatility has to be accommodated by the trade.
What is your Stop Loss Size in terms of pip size or any method you follow to define your S/L ex: 5X of ATR etc...
Kindly do share your inputs...
The account used for swing trading is smaller, but my focus is switching more and more from intraday to swing trading, my system can be applied to all timeframes.
The SL size varies, my trading is based on market behavior and price action so most of the time i place my SL at 2 or 3 times of what my max daily loss is according to my money management, the stop is there for safety reasons, you never know when a extreme event might happen so at least i am protected if it does (if i get filled of course).
I exit my trades the same way i enter my trades, analyzing market behavior and price action, so no hard stops.
It is interesting that you ask such a question, it implies to me you do not know why or actually if your strategy works... How do you determine when to trade, what stop to set, what target you should have? My point is nobody but you can answer this question but you based upon your analysis which resulted in you trading the way you do.
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