Hi
I would like to share with youll my Non spike news trading stratergy, I hope youll can possitively addapt this stratergy to your trading style.
Also I would appretiate how other people in this news room trade the news (Non Spike)
This is applicable to only B grade reports such as Industrial Production, durable goods etc. DO NOT TRY THIS ON NFP or CPI. Also you must use this strategy only on brokers who do not have widened spreads for over an extended amount of time.
Stratergy:
1) Open 1 Hr Chart plot 60 SMA on (High, Low , open and Close)
2) If Price above all 4 SMAs Buy at 1 Mint before news , on GBP/USD you will use a "Satety Stop" of 40 Pips pls note this is just the safety stop, its not the real stop. If Price below the 4 60 SMAs sell at 1 Mint before the news release.
3) Get down to 1 Mint chart , and watch for the number like a hawk. If # has deviated by more than a significat amount (Now what is significant will be diffrent on diffrent news items) and if the number is agasit you exit within the 1 Mint candle closes mostlikely at a 15-20 pip loss.
4) If the # is in your favor exit at the close of 1 Mint candle.
5) If # is not in your favor but is not tradable , most likely it will just spike agasit you and will get back down in yiour direction. Just hold on to the samechange your SL to 1 Pip above the spike caused on a 5 Mint candle ..... Normally 20-25 Pips .
6) If a candle on the 5 Mint chart closes (not just spikes but closes) on your side of the pre release price thats your 2nd signal to add to your now willing position.
7) Sl will be at 1 Pip above the spike casued on the 5 Mit candle and TP will be exactly the same distance on the other side.
The reason I have this straergy is that I have noticed nearly all news casuses spike and volatility however not all news chage the fundamentas of the market. Unless untill the deviation is very significant.
I would like to share with youll my Non spike news trading stratergy, I hope youll can possitively addapt this stratergy to your trading style.
Also I would appretiate how other people in this news room trade the news (Non Spike)
This is applicable to only B grade reports such as Industrial Production, durable goods etc. DO NOT TRY THIS ON NFP or CPI. Also you must use this strategy only on brokers who do not have widened spreads for over an extended amount of time.
Stratergy:
1) Open 1 Hr Chart plot 60 SMA on (High, Low , open and Close)
2) If Price above all 4 SMAs Buy at 1 Mint before news , on GBP/USD you will use a "Satety Stop" of 40 Pips pls note this is just the safety stop, its not the real stop. If Price below the 4 60 SMAs sell at 1 Mint before the news release.
3) Get down to 1 Mint chart , and watch for the number like a hawk. If # has deviated by more than a significat amount (Now what is significant will be diffrent on diffrent news items) and if the number is agasit you exit within the 1 Mint candle closes mostlikely at a 15-20 pip loss.
4) If the # is in your favor exit at the close of 1 Mint candle.
5) If # is not in your favor but is not tradable , most likely it will just spike agasit you and will get back down in yiour direction. Just hold on to the samechange your SL to 1 Pip above the spike caused on a 5 Mint candle ..... Normally 20-25 Pips .
6) If a candle on the 5 Mint chart closes (not just spikes but closes) on your side of the pre release price thats your 2nd signal to add to your now willing position.
7) Sl will be at 1 Pip above the spike casued on the 5 Mit candle and TP will be exactly the same distance on the other side.
The reason I have this straergy is that I have noticed nearly all news casuses spike and volatility however not all news chage the fundamentas of the market. Unless untill the deviation is very significant.
