While many Forex traders are technical traders and institute its operations on the basis of indicators technicians a price chart, there are some traders who are traders forex news Basically pure.
What is actually trading forex news?
news Forex trader is basically a forex trader taking decisions to trade based on news reports that are released every day. He does not rely on technical indicators at all.
Why is it possible to negotiate news?
The forex market is a 24 hour market, and there are 8 major currency pairs available for trading with well over 17 derivatives, which allow press releases economic almost every day of one or more of these currency pairs impact on their movements.
What are these 8 major currency traders that the currency often seen by economic news releases that impact on its value?
The eight major currencies are negotiable
1. US dollar (USD)
2. British pound (GBP)
3. Euro (EUR)
4. Japanese Yen (JPY)
5. Dollar Australian (AUD)
6. Swiss franc (CHF)
7. Canadian Dollar (CAD)
8. New Zealand Dollar (NZD)
The availability of these currency pairs and their derivatives such as USD / JPN, Euro / USD, AUD / USD and several other means that can change some currency or its derivative in the pair any time these coins span the globe!
So for the forex trader trading on the news, you will have their eyes and ears in the publication of economic news and data that affect currency values.
in general, we will look out for news regarding interest rates or direction of interest rates, such as decisions on rates FOMC publication of retail sales figures, indications inflation, which can be measured by the price index consumer or producer price index, unemployment figures, news about industrial production, news indicating momentum in business, such as surveys of business sentiment and surveys of consumer confidence, manufacturing sector surveys and news on the trade balance of the country (eg foreign purchases of Treasuries US).
new releases different impact on currencies, and often lead to breakouts in volatility.
The key to trading the news is to take advantage of these movements in volatility that may last a few minutes or hours, or even days in the future.
Running purely on press release is harder than it looks, but the task is made easier and more cost effective with the use of indicators, such as indicator break the Bollinger band or rupture a candlestick or bar prices. Statistics have shown news release can trigger movements range in size from 33 to 124 pips, leading to business opportunities.
Through the study on the high probability trade setups That has consistently produced with the publication of historical economic data, currency trader news can devise strategies that can allow him to get quick profits from volatile movements arising from press releases. The potential benefits can be massive when the trader forex news can react quickly.