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How do you trade news?

  • #481
  • Aug 11, 2006 2:16pm Aug 11, 2006 2:16pm
Quoting xxDavidxSxx
I had an Idea about trading news. tried it today on news.

instead of trying to predict/guess at where its gonna go, or jump in and out durring fast movement, wait for all the worlds banks to get there orders in and the market to settle. and look for 5/3/5 wave formations. the direction of the 5 wave waves should be the direction the market is going.
A very powerful tool I use on every entry on 5 min charts.
worked very well today I will try this from now on.


Dave
I need to add to this,

The waves will start on the 1 min and develope on 5 min first. wait untill new support/resistance is establishes on these charts in a correction to the most recent direction the last large move was. and some kind of ma cross. 34/55 are good on 1 and 5 min charts for that the volitility durring the news can be absorbed in those. be patient cause all that volume is still in there. if you miss out on 10-20 pips so what. Trade when the market shows you what its doing not befor guessing. you should be able to take 30-60 pips ez. using any other exit method you want. just be sure to trail s/l incase those big banks decide to pull profits suddenly because they think its a short term thing.


keep an eye on 1 hr 4hr and daily charts for key support/resistances too. Befor and after you enter the market.

Dave
  • #482
  • Aug 11, 2006 3:07pm Aug 11, 2006 3:07pm
Quoting xxDavidxSxx
I had an Idea about trading news. tried it today on news.

instead of trying to predict/guess at where its gonna go, or jump in and out durring fast movement, wait for all the worlds banks to get there orders in and the market to settle. and look for 5/3/5 wave formations. the direction of the 5 wave waves should be the direction the market is going.
A very powerful tool I use on every entry on 5 min charts.
worked very well today I will try this from now on.


Dave
Could you please post a chart of these 5/3/5 wave formations?

Thanks

Womble
  • #483
  • Aug 12, 2006 8:00am Aug 12, 2006 8:00am
Quoting learningtheropes
Faure:

Does this mean you may already have a position open in a news correlated pair (ie GBP or EUR w/ respect to the FOMC) based coincidentally on other factors like T/A, and if the news breaks in you favor you run w/ it or cut if it's not, or, are you saying you maybe do ur homework, predict and get out if your wrong?? Or maybe you can educate me/us further if I missed it...
What amazes me is that people think they can make money without doing their homework. So before an announcement I will have a plan of what what to do in each scenario and how I expect price action to unfold. It's good to know whether to expect a break-away or chop. Take the FOMC for example, it was so over analysed and over-hyped by the media that a break-away was extremely unlikely. I actually waited for the initial spike (which is almost always opposite to where the market will end up), got a pause in the price action and faded the spike.

Other times I will come in with a directional bias based on how the market reacted to previous news, what people (the media) are expecting and where stops (s&r levels) are located. I will take a position before the news and wait to see how it unfolds keeping in mind what I expect to happen (range or expansion). During the news I will trade in and out constantly. Just remember the phrase; Buy the rumor, Sell the news.
  • #484
  • Aug 12, 2006 8:32am Aug 12, 2006 8:32am
Quoting faure
Buy the rumor, Sell the news.
New Member, Very Old Quote. Hmmm....
  • #485
  • Aug 12, 2006 3:41pm Aug 12, 2006 3:41pm
Quoting xxDavidxSxx
I had an Idea about trading news. tried it today on news.

instead of trying to predict/guess at where its gonna go, or jump in and out durring fast movement, wait for all the worlds banks to get there orders in and the market to settle. and look for 5/3/5 wave formations. the direction of the 5 wave waves should be the direction the market is going.
A very powerful tool I use on every entry on 5 min charts.
worked very well today I will try this from now on.


Dave
David, can u explain this with more detail please.

Tnx a lot
Have a good day and a good trade!
  • #486
  • Aug 13, 2006 12:18pm Aug 13, 2006 12:18pm
I'm looking exactly for this kind of volatility information, but, for all of the majors (and some minors) across a wider time period (going back several years).

Anyone have a lead on where to find this info?

Specifically, I'm looking for a database of major news announcements which show the range of the initial upward/downward spike within the first 30 minutes. Icing on the cake would be to get data on the sustained follow-thru for the day on the breakout, max/min spike ranges, and max/min/avg retracement during initial period (e.g. 30 minutes)

Thanks for any pointers!

Bill

Quoting OrangeRoshan
Thats what we called STRADDLING! This is the method I use before I learned to read TA. It keeps my moral high & also my live account.

FF calender is quiet accurate. Just use the Orange & red & ignore the yellow. Orange & yellow will usually react to the news more.

I got this from somewhere in this forum. I hope this will help.

Thanks
  • #487
  • Edited 9:37am Aug 14, 2006 8:32am | Edited 9:37am
Hi

US PPI is often recommended for "news trade" in various threads.
Therefore I expected it to be red flagged in the FF calendar.

What would be the reason for only set it to orange?

Or is the definition for, red, something like: new release often moves the prices more than 70 pip.

I think we will see a spike tomorrow. Let it be big
  • #488
  • Aug 15, 2006 3:05am Aug 15, 2006 3:05am
I've haven't looked at it in detail with historical data, but it seems even if there is strong news on PPI, the market reaction is a bit muted because CPI is the next day. If CPI is strong in the same direction then the market will react.
  • #489
  • Aug 15, 2006 1:11pm Aug 15, 2006 1:11pm
What currency pairs move in opposite directions off news at the:

London open

Frankfurt open

Tokyo open

Sydney open

Honk Kong open

Thanks...
  • #490
  • Aug 16, 2006 9:22am Aug 16, 2006 9:22am
Quoting sinclap
What currency pairs move in opposite directions off news .....

Thanks...

Try this website regarding currency correlation. Not necessarily based on exchange openings but useful nonetheless.

http://www.mataf.net/en/analysis-correlation.htm
  • #491
  • Aug 16, 2006 5:14pm Aug 16, 2006 5:14pm
Quoting MoneyMa$ter
Try this website regarding currency correlation. Not necessarily based on exchange openings but useful nonetheless.

http://www.mataf.net/en/analysis-correlation.htm
There are interesting Expert Advisers for correlation trading using Metatrader4 through billbarnsley. I think a demo version is available using his name @mac.com
  • #492
  • Aug 16, 2006 11:24pm Aug 16, 2006 11:24pm
I just watched the forex exchange program that comes on twice a day on my tivo. It seems that everyone is talking about a major decline of the $ over the next comming days.
  • #493
  • Aug 17, 2006 4:26pm Aug 17, 2006 4:26pm
Chucui:

Can you please tell me what broker platform do you use because I follow that procedure but most of the platform I use (currently CMSFX Platform), does not allow me to do this strategy unless 15 minutes before the news is released. If I want to try this strategy in period of time minor than 15 minutes of the news time I have to use a stop 35 pips (minimum) because of the high volatility during that moment and most of the time during that time the platform does not work properly.

Thank in advance!
marcosfm.

Quoting chucuoi
Hi everyone,
I trade with big news, before 90 seconds news release I put order SELL entry stop -15pips and BUY entry limit +15 pips. When big news release, price move up or down al least 50 pips in 1 minute, and I take profit. Sometime I failed, but I success more often.
What do you think about the way I trade?
In Forex factory do not have NZD, CHF calendar news. I find it in dailyfx.com . I am finding more news and forecast of NZD, CHF? Where can I find them?
Thanks!
  • #494
  • Aug 23, 2006 3:20pm Aug 23, 2006 3:20pm
Quoting FXopportunist
So far someone has said "trading the news is for noobs". Another suggested that the chat room traders and their personal accounts are moving the currency markets and creating volatility.

Come on guys !!! Your Killin' me ! ! !

How many times have you read articles stating the currency market is the largest in the world measured in the TRILLIONS ! ! ! ????

You really think noobs are moving this market with their oanda minis????

When do markets move the most and fastest????
---After data releases and news events........

Who is moving the markets????
--- Goverments, Banks, Funds and Insitutions..........

Are these heavyweights noobs????
----don't answer that. it is a rhetorical question...............


We are not even fleas on the currency market dog............
We are bacteria on the fleas on that dog !
FXopportunist,

Well said.
Stacking pips since 2002
  • #495
  • Aug 23, 2006 5:48pm Aug 23, 2006 5:48pm
FXopportunist,

I think you got it wrong, no, trading news it's not for noobs, it's for profesionals, but i think the noobs don't understand that. They only see a quick way to make pips/money in a couple of seconds and they get tempted.
Try hard, think fast, die young
  • #496
  • Aug 23, 2006 8:02pm Aug 23, 2006 8:02pm
Quoting dof
FXopportunist,

I think you got it wrong, no, trading news it's not for noobs, it's for profesionals, but i think the noobs don't understand that. They only see a quick way to make pips/money in a couple of seconds and they get tempted.
Funny you should say that.
I happen to know a "noob" who has more than doubled his account in about a month and a half trading data. He has some mentoring, but he is a sharp young guy.

If a strategy is good, it is good.
It is kind of annoying that he hasn't paid his dues though. LOL
Profit is where readiness meets Opportunity
  • #497
  • Aug 24, 2006 4:44am Aug 24, 2006 4:44am
Quoting FXopportunist
Funny you should say that.
I happen to know a "noob" who has more than doubled his account in about a month and a half trading data. He has some mentoring, but he is a sharp young guy.

If a strategy is good, it is good.
It is kind of annoying that he hasn't paid his dues though. LOL
Demo or real?

Give him time... a month is like a second

Just joking. With the good plan, knowing what your doing, you can make money. But take yesterday for example, i think many people lost money, it was a hard to trade news day.

A noob is a noob until he has a good plan that he's applying and he's making money constantly. You can reach that level in 1 month, 1 year, 10 years... never
Try hard, think fast, die young
  • #498
  • Aug 24, 2006 8:15am Aug 24, 2006 8:15am
Entered GBPUSD LONG based on break of channel created following news.

Now we wait...
Attached Image
  • #499
  • Aug 24, 2006 8:20am Aug 24, 2006 8:20am
Not convinced by the break. Took 1 pip profit, was up as much as 12. Paultry! Perhaps the market awaits the 10am news.

Any ideas, thoughts?

forexpips
Attached Image
  • #500
  • Aug 24, 2006 8:21am Aug 24, 2006 8:21am
hi smjones,


would you mind sharing how you traded todays Durable Goods with your strategy? Thx
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