Safe Entry When News Release

One of the sources of information that traders trust in developing their trading strategies is the release of news. At the time of news release there will be very fast movements in the market. News related to global economic conditions also often have no small impact. Therefore, it is important to know what types of news have a big impact so that you have to be careful when entries during news hours are about to be released. Fundamental changes are very influential on price movements in the market, and price movements are usually displayed in a chart. This trading analysis helps traders to understand the global trend towards the value of several currencies in the current economy. If fundamental analysis looks more towards changes in the global economy or the fundamentals of a company, then for technical analysis it looks more at the trend of a price in the market by looking at past data.

Forex Trading Potentials and Risks During News Release

In the three hours leading up to the release of the NFP data, the EUR/USD currency pair has fallen more than 50 pips. Then, EUR/USD surged up again by more than 50 pips within 1 hour, right after the news was released. The size of the candle around the time of the news release looks much different than the size of the candle before and after it. In fact, the effect of NFP at that time tended to be moderate. There are certain times when the NFP release triggers a move of up to 100-200 pips in a matter of minutes. Imagine if a trader opens a long position right before the price spikes up, by accurately predicting that the NFP news will increase EUR/USD, then closes the position after returning to the previous price range.

Apart from that, traders must understand that the risks are also greater than ordinary forex trading, because no one knows exactly whether the news released later will push EUR/USD up or down even further. On the other hand, very high market fluctuations and volatility will make brokers tighten leverage requirements and increase spreads. That is, in order to be able to trade forex when news releases, traders must prepare large capital and be ready to pay higher trading fees. By understanding these risks, many forex traders choose to stop trading only 1-2 hours before the release of important news. Traders keep a close eye on the news, but avoid the market completely until 1-2 hours have passed after the news has been released, assuming the effects have worn off. This is a safe way of trading forex during news releases, and is suitable for traders who are not interested in high risk trading positions.


More info:
Free soft copy material by contacting 081 258 066 174 Whatsapp/call
Private info / paid premium class (guided forever until get consistent profit and independent). Whatsapp/call 081 233 593 672 or direct access to our Website www.wijayatrading.com

Comments

Post a Comment

Popular posts from this blog

Tingkatan Seorang Trader

Image
Sebelum menjadi trader sukses, perlu dipahami bahwa ada berbagai macam tingkatan trader forex yang harus dilalui. Tingkatan-tingkatan tersebut biasanya dibedakan dari beberapa kriteria. Jika dilihat dari pengalaman, pengetahuan, cara berfikir, dan sikap mentalnya, seorang trader dapat dikategorikan dalam 5 tingkatan. Trader Pemula Seorang trader pemula pada umumnya masih merasa asing terhadap pasar forex. Trading forex dianggap sesuatu yang baru dan mungkin agak unik atau mengasyikkan. Mereka cenderung ingin mengetahui segala hal yang berhubungan dengan trading dan pasar forex dengan cepat dan instan. Baik analisa fundamental maupun analisa teknikal dipelajarinya dengan cepat. Trader pemula selalu mencari dan mempelajari cara-cara yang gampang, sederhana, dan segera dapat digunakan untuk trading. Pada umumnya, mereka mengharap profit besar dari trading forex. Trader Profesional Dari sebutan "profesional" yang disandangnya, memang profesi utama trader di tingkatan ini adalah t
Read more

SNR, BEST TRADE STRATEGY!

Image
SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f
Read more