i miss this trades and its making me crazy i should have got pips now
price action/news trade journal 70 replies
fxsh Price Action Helper(PAH) & fxsh News 1 reply
How to understand price action in news? 8 replies
Dislikedi miss this trades and its making me crazy i should have got pips nowIgnored
DislikedHi afolabiay
I noticed that often the price action before the News weakens or strengthens - obviously the punters have wind of the result - Last night NZDUSD was falling long before the news broke!!Ignored
DislikedHi afolabiay
I noticed that often the price action before the News weakens or strengthens - obviously the punters have wind of the result - Last night NZDUSD was falling long before the news broke!!Ignored
DislikedThat's not the case.
Many times the price before the release goes south, while after the news it gaps higher.
Before any major news announcement like NFP or cash rate, the liquidity providers (banks) withdraw their liquidity from the market afraiding that they will not be able to hedge their open positions if the marked suddenly moves to one direction. With limited liquitity the price is more volatile because there are less buyers and sellers available.
That is the only reason you are seeing sharp moves in the last seconds before the news...Ignored
DislikedCan't agree with you - if you look at AU price rose sharply - drop beforehand was just a fakey. When PA is above rising support or below dropping resistance - very rarely have I seen it shoot the other way after news - Does happen occasionally but it's rare.Ignored
DislikedCan't agree with you - if you look at AU price rose sharply - drop beforehand was just a fakey. When PA is above rising support or below dropping resistance - very rarely have I seen it shoot the other way after news - Does happen occasionally but it's rare.Ignored
DislikedHello,
You must have missunderstood my statement. I only explained why in the seconds before a big release the price is more volatile, and I said that the small move seconds before the release might be of the opposite direction of the move after the release and that we should not be paranoid about people getting the numbers earlier etc etc.
Every news trader should know about news lock-ups and how the actual numbers are fed to the public. There are sometimes leakages, and sometimes hints (as the recent example of Cameron with the UK GDP number)...Ignored
DislikedGBP Consumer Price Index Previous 2.2% Forecast 2.4%
Core Consumer Price Index---Previous 2.1 Forecast 2.2
Analysis
Spike Trading - Buy GBPUSD 30 seconds before the release of the news (Stop Loss 20 Pips)
Main News - Buy If CPI = 2.9 or greater than 2.9
Core CPI = 2.7 or greater than 2.7
Sell if CPI = 1.8 or less than 1.8
Core CPI = 1.5 or less than
NOTE:Close the spike profit 1 minute after the news if your broker does...Ignored