Trade After The News

Does anyone have any ideas on how to trade after the new, Do you enter based on the numbers (DATA) or on the trend? Reason for me asking is this last friday I traded NFP (Non Farm Payroll) I was on both sides one with a market order and an entry to cover myself on the other side, the market gapped and closed one side (the sell side) but my entry was filled 51 pips after my entry Price and then my limit entry was filled even though it was 48 pips below and I was in a Buy (Long) ENTRY1.2794, STOP 1.2786, LIMIT 1.2808 so I would break even, even though I was wrong, but the trading desk said everything was traded ok (-1,295.00USD) So they said the next best price was 1.2845 with was ok, but then they filled my Limit 1.2808

On the 'old' fxcm web site, they published dailiy and weekly trading tips. Maybe they still do it. But one tip ... from Kathy Lien as I recall... had to do with fading the news. I had stored that in an electronic file, but when fxcm changed their website, the link was lost and I could not retreive the post.

As I recall, you were to measure the range of price for x periods before the news. Then run a fib study on the range and find the 1.618 level. The idea was to wait until the smoke had cleared... fade.... and use that fib level as a signal line. I wish I could be more specific.

Maybe this post will get some attention to the question.

Lou

If you trade in the 2 - 5 minutes after the news you are bound to blow your stops and suffer slippage on the taking of a position. My advise would be to trade after the news and trade for a 68% retracement of the highest or lowest point reached during the volatility in the minute or three after the news. You can try for a 32% retracement of the starting point if the price action contains no retracements (i.e. is at it's high/low) or a 32% follow through after, or tightening the stops near that level and trying for a 50 or 68% continuance.

In other words the price can be volatile and choppy (lots of retracements, often in less than a minute), but soon after the news we are betting on the price action being less so, smoother, thus less likely to take out our stops.

Please bear in mind I haven't tried this, and I don't use Fib levels myself, so this is just a trading idea I'm passing along.