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How do you trade news?

  • #101
  • Apr 7, 2006 1:40pm Apr 7, 2006 1:40pm
Quoting smjones
Ya bet ya,

I just did not want to plot the lines, because I thought it kinda proprietary to you. ... Thanks for the info... It works great. It is a good confluence.

SMJ
I really appreciate your integrity, thanks. But do feel free to tell people how wonderfully it works!
The framework is there; we just have to work on our frame of mind.
  • #102
  • Apr 7, 2006 9:22pm Apr 7, 2006 9:22pm
All in all a good day to trade news, a fine example of what to do. On a 1m chart you could see a symetric triangle formation that eventually broke down at the same location as sjm's TDTL. Continued confirmation by a breakdown through the initial pre-new open price. Divergence on RSI and Fisher transform for an overall final confluence.

I'm interested in the 146 ab fibo set, would you mind sharing this technique niceguy?

Thanks and good trading to all....

fl
  • #103
  • Apr 7, 2006 11:47pm Apr 7, 2006 11:47pm
Niceguy777 sells a book that has a proprietary framework of a combination of static fib lines of his own devise, that he has labeled Absolute FIBOS. Price tends to both congregate and deflect off of these FIBOS. Thereby making it possible to develop confluences with other types of technical analysis and also within the framework of these FIBO lines themselves. It is both a framework and a useful technical tool. It is called LBT and nice guy can give you the web site to find out more or you can just Google LBT.

Good trading to ya, SMJ


Quoting fl_tradin
All in all a good day to trade news, a fine example of what to do. On a 1m chart you could see a symetric triangle formation that eventually broke down at the same location as sjm's TDTL. Continued confirmation by a breakdown through the initial pre-new open price. Divergence on RSI and Fisher transform for an overall final confluence.

I'm interested in the 146 ab fibo set, would you mind sharing this technique niceguy?

Thanks and good trading to all....

fl
  • #104
  • May 22, 2006 9:45pm May 22, 2006 9:45pm
Quoting smjones
I do not care what the actual news report has to say. All I do is make a trade based on the consensus of the trading participants. That is why I place my trade after the news comes out, when price consolidates temporarily.

see the attached chart of last Friday's cable.

Thanks SMJ
may i ask what if the price goes one way all the way after the news break out, do you just sit there watch and you try to get on board at some point of time? if the later how do u manage it? thanks.
  • #105
  • May 22, 2006 9:57pm May 22, 2006 9:57pm
That is so rare I cannot recall the last time that happened, but if it did, my answer is no. I will never chase a trade.. There is always another one around the bend in the trend.

Scott


Quoting tradewiz
may i ask what if the price goes one way all the way after the news break out, do you just sit there watch and you try to get on board at some point of time? if the later how do u manage it? thanks.
  • #106
  • Jun 27, 2006 7:46am Jun 27, 2006 7:46am
smjones:

What broker are you using to get fills on the news releases? I'm guessing you'll be watching the release at 1:15 on Thursday.....
  • #107
  • Jun 27, 2006 7:48am Jun 27, 2006 7:48am
Quoting Palmer
smjones:

What broker are you using to get fills on the news releases? I'm guessing you'll be watching the release at 1:15 on Thursday.....
I dont believe FOMC news are good to trade
up and down up and down...
  • #108
  • Edited 8:34am Jun 27, 2006 7:52am | Edited 8:34am
Hi Palmer,

Please read my earlier posts in this thread. I do not trade the news as it comes out. I use FxSol or MG. I do not care what the news is, only the aftermath.
I think that the FOMC is a hard one for me to trade, because it kind of dribbles out and does not make the market jump right away and then retrace right away.

Thanks Scott


Quoting Palmer
smjones:

What broker are you using to get fills on the news releases? I'm guessing you'll be watching the release at 1:15 on Thursday.....
  • #109
  • Jun 27, 2006 2:29pm Jun 27, 2006 2:29pm
Is it possible then that one can trade the news as it is released and/or after the news has moved the market (if any movement occurs)? In other words, on trades such as the non-farm, after it does its up and down "dance", can one still make a profit by entering the trade as it is retracing?
  • #110
  • Edited 4:19pm Jun 27, 2006 3:12pm | Edited 4:19pm
Why dance with the Devil by the pale Moon Light?
Trading pre news can't treat you right.
Go where the highest probability can be found...
Waiting for the retrace, you'll be High profit bound...

LOL Scott
Quoting stignata
Is it possible then that one can trade the news as it is released and/or after the news has moved the market (if any movement occurs)? In other words, on trades such as the non-farm, after it does its up and down "dance", can one still make a profit by entering the trade as it is retracing?
  • #111
  • Jun 29, 2006 11:29am Jun 29, 2006 11:29am
Ahhh....now I see where the rainbow ends.


CHris
  • #112
  • Jun 29, 2006 12:47pm Jun 29, 2006 12:47pm
Sometimes one needs a poem to understand the most prosaic aspects of life...



Dane
  • #113
  • Jul 8, 2006 12:46pm Jul 8, 2006 12:46pm
I'm curious to know if anyone else has tried this. I have a grid EA that I use on MT4 that I was just going trade the trend on, but I thought why not use it to catch the moves of the news releases.

I set it up so that it would start buying or selling 15 pips above/below the price (for the non farm payroll). It actually did quite well, but I made the mistake of having it re-issue buy orders as it was trending within the release (and not closing out early enough). I ended up making decent money on it, all mistakes aside (demo account, 3k mini).

I would think this would be a good method of trading highly explosive moves in a currency.

Any thoughts on this?

Jason
  • #114
  • Jul 9, 2006 2:01am Jul 9, 2006 2:01am
Quoting jlowder
I'm curious to know if anyone else has tried this. I have a grid EA that I use on MT4 that I was just going trade the trend on, but I thought why not use it to catch the moves of the news releases.

I set it up so that it would start buying or selling 15 pips above/below the price (for the non farm payroll). It actually did quite well, but I made the mistake of having it re-issue buy orders as it was trending within the release (and not closing out early enough). I ended up making decent money on it, all mistakes aside (demo account, 3k mini).

I would think this would be a good method of trading highly explosive moves in a currency.

Any thoughts on this?

Jason
Hey Jason,

Very dangerous !!!
The Brokers know this - and at most times you will get chopped by the pre news spikes.
I have tried this many times and got burned.

Try a chennel breakout after the news - much much after.
  • #115
  • Jul 9, 2006 3:21am Jul 9, 2006 3:21am
Hi All,
First of all thanks to Bemac for your excel sheet and to Darkstar to share your knowledge/experience.
Maybe i just a new guy in forex but i've study a lot on TA to predict the market move. But what i can say is none of them will give me a correct answer on the correct movement during news. So i've start to study the news.
For what i can see is the correct prediction to the result of the news will give you a green pips eventhough what the TA is look like.
I normally trade cable due to the variable of the GBP is not so aggresive campare to other currency like Euro or Yen and the volativity is pretty good.
You can view my word attachment and pls give your comment. I'm just new to this bussiness .
Thanks to you all and correct me if i'm wrong.
Attached File(s)
File Type: doc 29jun2006 Thursday -FOMC Interest Rate Statement2.doc   82 KB | 488 downloads
  • #116
  • Jul 9, 2006 8:50am Jul 9, 2006 8:50am
Quoting Pip-Gandalf
Hey Jason,

Very dangerous !!!
The Brokers know this - and at most times you will get chopped by the pre news spikes.
I have tried this many times and got burned.

Try a chennel breakout after the news - much much after.
So one thing I haven't quite figured out in this thread is how do you determine when the price is in a channel and how to trade the breakouts? Is there a FAQ/DOC somewhere that gives the specifics of the method you guys use?

As for grid trading the news, I don't place my orders until 30 seconds before the news and with 15 pip entry points away from the current price I don't see it as a problem. I'd also only let it trade one way - not back down. Like I said, I actually did well - I just needed to tweak it. But advice taken.

Thanks,

Jason
  • #117
  • Jul 9, 2006 9:02am Jul 9, 2006 9:02am
Quoting jonas
I normally trade cable due to the variable of the GBP is not so aggresive campare to other currency like Euro or Yen and the volativity is pretty good.
I've seen mention of this before. When you say you normally trade cable, what are you talking about? Is this in reference to a specific pair or is it something else?

Thanks,

Jason
  • #118
  • Jul 9, 2006 10:31am Jul 9, 2006 10:31am
Quoting jlowder
I've seen mention of this before. When you say you normally trade cable, what are you talking about? Is this in reference to a specific pair or is it something else?

Thanks,

Jason
Hi Jason,
Maybe this is what you mean,
Quote
Take from marketiva
Trading Terminology

Traders often chat with one another about a variety of topics related to the forex market, giving their perspectives and discussing trading ideas and current moves on the market. While communicating with each other they often use slang to express their thoughts in a shorter form. You can read about the slang and other trading terminology in these pages.

EUR/USD: Euro / US Dollar is often called Euro;

USD/JPY: US Dollar / Japanese Yen is often called Dollar Yen;

GBP/USD: British Pound / US Dollar is often called Cable;

USD/CHF: US Dollar / Swiss Franc is often called Dollar Swiss, or Swissy;

USD/CAD: US Dollar / Canadian Dollar is often called Dollar Canada, or C-Dollar;

AUD/USD: Australian Dollar / US Dollar is often called Aussie Dollar;

EUR/GBP: Euro / British Pound is often called Euro Sterling;

EUR/JPY: Euro / Japanese Yen is often called Euro Yen;

EUR/CHF: Euro / Swiss Franc is often called Euro Swiss;

GBP/CHF: British Pound / Swiss Franc is often called Sterling Swiss;

GBP/JPY: British Pound / Japanese Yen is often called Sterling Yen;

CHF/JPY: Swiss Franc / Japanese Yen is often called Swiss Yen;

NZD/USD: New Zealand Dollar / US Dollar is often called New ZealandDollar or Kiwi;
  • #119
  • Jul 9, 2006 1:29pm Jul 9, 2006 1:29pm
I have seen GBPJPY called the Geppie and the EURJPY called the Euppie as well. Then there is the loonie for the Canadian dollar as well.
  • #120
  • Jul 11, 2006 8:23am Jul 11, 2006 8:23am
We sure are spoiled lately on the data plays aren't we??
Firdays non farm was a one way train, last nights pound went 50 in one direction immediatlely and, finally, Today's CAD play was a one way train.
gotta love some opportunities in such a lousy intra day market.
Profit is where readiness meets Opportunity
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