Forex trading strategy using news
The news trading forex strategy, also known as news trading,
is a trading technique in which traders use the economic calendar to follow and
take advantage of the latest economic news releases that may affect the forex
market.
Here are some steps and techniques that can be used in a
forex trading strategy using news:
Use the economic calendar: First of all, traders need to
understand and follow the economic calendar to know when relevant economic news
releases will occur. Some websites that can help with this are Forex Factory,
Investing.com, and DailyFX.
Determine market volatility: After knowing when economic
news releases will occur, traders should evaluate market volatility and decide
whether they will enter a trade or not. Big news releases can cause significant
market fluctuations, so traders must decide whether they are ready to take the
risk or not.
Use fundamental analysis: As a news trader, it is important
to understand how the news may affect certain currencies. Traders should pay
attention to important economic news such as inflation figures, interest rates
and reactions, and use fundamental analysis to determine how the news will
affect the market.
Create a trading plan: After determining whether to enter a
trade or not, the trader must create a detailed trading plan. A trading plan
should include stop-loss levels and profit targets, as well as exact entry and
exit times.
Perform technical analysis: Finally, traders should perform
technical analysis on the charts to determine the proper support and resistance
levels to enter and exit trades.
In a forex trading strategy using news, it is very important to have discipline and follow the trading plan that has been made. Traders must be prepared to take the necessary risks and remain disciplined in following their trading strategy to achieve long-term success