Which days to avoid trading? | Forex Factory

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Which days to avoid trading?

  • #1
  • First Post: Aug 28, 2015 12:00am Aug 28, 2015 12:00am
What news events should a trader look out for to avoid trading the WHOLE day? I know FF has a calendar with all the red news but a lot of those news releases don't cause much disruption for the whole day, maybe for an hour.

What are the news events that prevent the market from heading in any clear direction until that news release?

So far I've come up with Non-Farm Employment/Unemployment Rate, FOMC Meeting Minutes/FOMC statement, and Official Bank Rate.

Again, I'm looking for news events that generally prevent the market from trending in any direction for the whole day (everyone is at a standstill until the news release). Like in the picture attached, there was hardly any movement until the Unemployment Rate release for USD. What other news events cause the market to go flat as pictured? I think choosing the days to trade is one of the most important parts of trading.
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  • #2
  • Aug 28, 2015 1:20am Aug 28, 2015 1:20am
Quoting rnsfrd
What news events should a trader look out for to avoid trading the WHOLE day? I know FF has a calendar with all the red news but a lot of those news releases don't cause much disruption for the whole day, maybe for an hour. What are the news events that prevent the market from heading in any clear direction until that news release? So far I've come up with Non-Farm Employment/Unemployment Rate, FOMC Meeting Minutes/FOMC statement, and Official Bank Rate. Again, I'm looking for news events that generally prevent the market from trending in any direction...
I am also looking for the same question. Is there anybody who can tell me about that topic?
  • #3
  • Aug 28, 2015 2:15am Aug 28, 2015 2:15am
Best to avoid trading every day.
  • #4
  • Aug 28, 2015 2:21am Aug 28, 2015 2:21am
Its entirely a function of your strategy, time frame and beliefs.

If you use a long term technical system this question is irrelevant.
  • #5
  • Aug 28, 2015 3:41am Aug 28, 2015 3:41am
Quoting rnsfrd
What other news events cause the market to go flat as pictured?
They all can. It mostly comes down to data meets priced in expectations or not. One of the reasons I'm trading very short term.
Of course there is a stronger tendency for high impact news events because people waiting for them and/or closing their positions beforehand so they sort of disturb the natural flow.
  • #6
  • Aug 28, 2015 3:43am Aug 28, 2015 3:43am
Quoting rnsfrd
What news events should a trader look out for to avoid trading the WHOLE day? I know FF has a calendar with all the red news but a lot of those news releases don't cause much disruption for the whole day, maybe for an hour. What are the news events that prevent the market from heading in any clear direction until that news release? So far I've come up with Non-Farm Employment/Unemployment Rate, FOMC Meeting Minutes/FOMC statement, and Official Bank Rate. Again, I'm looking for news events that generally prevent the market from trending in any direction...
Those that you have picked up are pretty much the news that you need to watch out for. And the same goes for all other countries' currency. Any time a central bank announces something or an employment report comes out for a country, better not to take a position on those countries' currency before those events.
Make your losses in demo. Earn your profits live.
  • #7
  • Aug 28, 2015 10:38pm Aug 28, 2015 10:38pm
you should avoid trading during important news releases, like unemployment claims, gdp, interest rate based news, etc. (things that are red in the calendar) I wouldn't say that you should avoid trading for an intire day at any time. the only thing I can think about is long weekends when most markets are closed, like Christmas, New year, etc, we all need volatility to make money, but during news, the volatility can be a bit too high, price can spike several hundreds of pips in eather direction only to reverse 5 seconds later and go hundreds of pips in the opposing direction. there are people who are actually trading this, but they are experts and not something you should attempt if you don't know what you are doing. I find it better to wait until the market have broken the range and then get in.

besides that, you should avoid the Asian sessions, there are very low volatility during these hours where price usually go sideways all night.
the best times to trade is when London opens, they are the largest money movers in the world. then New york opens and when both London and NY is on.
is the best time to trade. I usually trade from Lonon open to NY close as the longest. but ideal is London open to London close.
Bulls are stupid Animals!especially when Im short!
  • #8
  • Aug 30, 2015 8:50pm Aug 30, 2015 8:50pm
Yes news release time is very risky , some times market turn so fast that traders are fail to follow it. We can not analyze well about movement either it will go up or high. I avoid over lapping time too , This also a quick movement time only experienced trader can handle trading these times. Volatile market give us fast profits if we manage it in time.
  • #9
  • Aug 31, 2015 10:51am Aug 31, 2015 10:51am
Quoting roughtrader
you should avoid trading during important news releases, like unemployment claims, gdp, interest rate based news, etc. (things that are red in the calendar) I wouldn't say that you should avoid trading for an intire day at any time. the only thing I can think about is long weekends when most markets are closed, like Christmas, New year, etc, we all need volatility to make money, but during news, the volatility can be a bit too high, price can spike several hundreds of pips in eather direction only to reverse 5 seconds later and go hundreds of pips...
I agree that for most news events we should only avoid an hour before and an hour after, but what I'm talking about is when usually the news is extremely important and traders generally don't choose a direction until that news is released. For example, there is red news for GBP, CAD, and USD coming up. Based on previous releases, the GBP news isn't that big, so I would just start trading about half an hour after it is released while the CAD and USD news usually doesn't produce much noise either so I can trade through those.

However, for Friday, USD has Average Hourly Earnings, Non-Farm Unemployment Claims, and Unemployment Rate. Although these are released at 8:30 A.M., previous charts show that generally the market doesn't go anywhere until this news is released considering USD news generally affects all pairs. On August 7th, the last time these news releases happened the market was flat until their release.

I'm just trying to filter red news because calling it red news isn't enough. Some red news you can trade through since it hardly has any effect, while others we have to avoid for the whole day in my opinion. There's a lot of times when I avoid trading because I see red news when in reality it has no effect, and there are days where I stop trading an hour before the news release but I have no profit because the market was flat.
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  • #10
  • Last Post: Sep 1, 2015 11:00am Sep 1, 2015 11:00am
It all depends upon the pairs you are trading with. My broker has given me information regarding various pairs and its favorable timings which helped me a lot.
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