How do You know if the news will be an impact? | Forex Factory

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How do You know if the news will be an impact?

  • #1
  • First Post: Aug 15, 2006 2:13pm Aug 15, 2006 2:13pm
Can You please help me? I dont want to trade on weak news. How do You know if the News is giong to be huge? Thanks.
Dan.
  • #2
  • Aug 15, 2006 2:24pm Aug 15, 2006 2:24pm
you should check out the forex factory calender.

the news with high volatility are in red
  • #3
  • Aug 15, 2006 2:29pm Aug 15, 2006 2:29pm
Quoting jotty
you should check out the forex factory calender.

the news with high volatility are in red
yeah, but sometimes its yellow, and it goes 80 pips the first minute!
  • #4
  • Aug 15, 2006 2:31pm Aug 15, 2006 2:31pm
i think alot of it also depends on how much the number tat comes out deviate frmo the expectations
  • #5
  • Aug 15, 2006 2:36pm Aug 15, 2006 2:36pm
Quoting jotty
i think alot of it also depends on how much the number tat comes out deviate frmo the expectations

Yeah, but look into the history of the calendar. There are a lot of times that red came out the same, and still, the market went like 50 pips the first minute.
  • #6
  • Aug 15, 2006 2:37pm Aug 15, 2006 2:37pm
Quoting Dan7974
Yeah, but look into the history of the calendar. There are a lot of times that red came out the same, and still, the market went like 50 pips the first minute.
i think thats the reason why its in red
  • #7
  • Aug 15, 2006 2:46pm Aug 15, 2006 2:46pm
Quoting jotty
i think thats the reason why its in red
So, what do i do if the number comes out the same on red?
  • #8
  • Aug 15, 2006 3:04pm Aug 15, 2006 3:04pm
It all depends on your trading style, some people like to straddle during news time. There is a thread on here not too long ago about news trading.

I think when the news is in red, it just means that it can cause the market to have volatile swings , without it having to deviate by alot. I think most people just use the forexfactory calender to have an idea of the volatility of the news, but they also have their own strategy of trading the news.
  • #9
  • Aug 15, 2006 3:08pm Aug 15, 2006 3:08pm
Quoting jotty
It all depends on your trading style, some people like to straddle during news time. There is a thread on here not too long ago about news trading.

I think when the news is in red, it just means that it can cause the market to have volatile swings , without it having to deviate by alot. I think most people just use the forexfactory calender to have an idea of the volatility of the news, but they also have their own strategy of trading the news.
Oh, thanks sooooo much!!!
  • #10
  • Aug 15, 2006 3:14pm Aug 15, 2006 3:14pm
Quoting Dan7974
Can You please help me? I dont want to trade on weak news. How do You know if the News is giong to be huge? Thanks.
Dan.
Dan,

Open a wordpad document and watch everysingle news trade. Record the numbers deviation, initial spike movement, retraction, continuing trend etc.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #11
  • Aug 15, 2006 3:19pm Aug 15, 2006 3:19pm
Quoting StockKJay
Dan,

Open a wordpad document and watch everysingle news trade. Record the numbers deviation, initial spike movement, retraction, continuing trend etc.

Thanks. I'll do that!
  • #12
  • Aug 15, 2006 3:37pm Aug 15, 2006 3:37pm
Basically look at the calender here on FF, do research on how much deviation from concensus can affect the market, and set up your own signals. Its not hard, rather its the brokers that are hard. Tommarow is a big day, 2 trades. You should look into them, one coming out at 4:30 (meetin) and the other 8:30 (cpi). These will be huge market movers, i predict about 40-80 pips each! Get a demo, get a news service (free) and trade to test it. Dont just jump the gun, im am still demoin til late sept til i feel confident enough to go live. Research and test, its the safest thing to do.
  • #13
  • Aug 15, 2006 3:44pm Aug 15, 2006 3:44pm
Quoting hunter101
Basically look at the calender here on FF, do research on how much deviation from concensus can affect the market, and set up your own signals. Its not hard, rather its the brokers that are hard. Tommarow is a big day, 2 trades. You should look into them, one coming out at 4:30 (meetin) and the other 8:30 (cpi). These will be huge market movers, i predict about 40-80 pips each! Get a demo, get a news service (free) and trade to test it. Dont just jump the gun, im am still demoin til late sept til i feel confident enough to go live. Research and test, its the safest thing to do.
Thanks. Thanks for all of these advices YOU GUYS!
  • #14
  • Aug 15, 2006 4:04pm Aug 15, 2006 4:04pm
Quoting Dan7974
yeah, but sometimes its yellow, and it goes 80 pips the first minute!
any examples of this you can remember?
Relax and be happy.
  • #15
  • Aug 15, 2006 4:10pm Aug 15, 2006 4:10pm
Quoting Dan7974
Can You please help me? I dont want to trade on weak news. How do You know if the News is giong to be huge? Thanks.
Dan.
basically it takes a lot of expereince to know what will move the market. and you will never be 100% right, of course.

there are indicators that go in and out of popularity depending on the fundamentals. in an economic recovery, the CPI is unimportant but the jobless rate is very important. but in an economic growth period its exactly opposite. there are a lot of "moving parts" with these economic indicators, its not cut and dry as we want it to be.

there is really one thing that is the most important about an economic indicator, and that is TIMELINESS. some indicators, like NFP, come out just a few days after the reporting period (for instance, we get NFP of June on the first friday of July). some indicators, like GDP, arent reported for over a month after the actual data is collected. old news is stale, new news is, well, new. the new stuff is what causes all the volatility!
Relax and be happy.
  • #16
  • Aug 15, 2006 4:30pm Aug 15, 2006 4:30pm
Quoting merlin
any examples of this you can remember?
No. But I do remember seeing one in the past. There are Orange colored ones that I can find that go 50 pips the first minute.
  • #17
  • Aug 15, 2006 4:32pm Aug 15, 2006 4:32pm
Quoting merlin
basically it takes a lot of expereince to know what will move the market. and you will never be 100% right, of course.

there are indicators that go in and out of popularity depending on the fundamentals. in an economic recovery, the CPI is unimportant but the jobless rate is very important. but in an economic growth period its exactly opposite. there are a lot of "moving parts" with these economic indicators, its not cut and dry as we want it to be.

there is really one thing that is the most important about an economic indicator, and that is TIMELINESS. some indicators, like NFP, come out just a few days after the reporting period (for instance, we get NFP of June on the first friday of July). some indicators, like GDP, arent reported for over a month after the actual data is collected. old news is stale, new news is, well, new. the new stuff is what causes all the volatility!
Thanks!
  • #18
  • Aug 15, 2006 5:02pm Aug 15, 2006 5:02pm
btw, here is a perfect example...the Bank of England meeting minutes (released tomorrow morning) are usually a very low volatility event. however, because of the surprise rate hike earlier this month, all of the sudden they become VERY important because everyone wants to know what the hell went on in that meeting that made them raise rates. news trading is more qualitative than quantitative.
Relax and be happy.
  • #19
  • Aug 15, 2006 8:19pm Aug 15, 2006 8:19pm
Is it just me or does it seem like everyone and theiur grandmother want to trade the news? It seems that its all the rage these days with several threads opened about pretty much the same thing. NO wonder the brokers are cracking down with huge spreads etc.
  • #20
  • Aug 15, 2006 8:44pm Aug 15, 2006 8:44pm
Quoting merlin
btw, here is a perfect example...the Bank of England meeting minutes (released tomorrow morning) are usually a very low volatility event. however, because of the surprise rate hike earlier this month, all of the sudden they become VERY important because everyone wants to know what the hell went on in that meeting that made them raise rates. news trading is more qualitative than quantitative.
I was informed that we will know from this meeting why one of their board member died last month. Rumor has it that one of the dessenters shot and killed him.

Isnt this meeting juicy? Everyone one in the financial market will have their ears glued to this news.

Expect slow crawling trend.
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