News Trading or (Trade the news technique) is a word which we always hear, in this column I will explain how I see Forex News Trading and how I exchange the news; I tried FX news trading for many years and found good points; how to use economic reports and FX news together with technical analysis.

In this column I will explain the most accurate and profitable FX techniques that each trader should use in his trades. To start with, we must use Technical and Fundamental analysis within our trades, we can not rely upon one without the other, we must use them both; Technical analysis analyses the history of the currency and forecast the future price; each trader has a different FX egy he utilizes in analyzing the market, me too I have my own egies and they're not concealed; you can assess my FX forum and buy anything you want out of it.

Let's talk now about the fundamental analysis, I tried all fundamental and news trading techniques but I did not find them worthy, but it's real that publishing news may affect a specific currency, but how it impacts the currency and as soon as it deviates that currency, some economic reports make the currency jump 100 pips throughout the first split second of the time launch -- you must pay for this sort of support (getting the information in the next of this release)

In addition a report may affect a currency throughout the first 10 minutes or half an hour but before it takes the ideal trend it may jumps up and down and might stop you out, lots of traders put entries above and below the price before 2 minutes of this discharge, and await the spike, but in addition it is not worthy method because it may happen that the news that deviate the currency doesn't have enough power to hit the goal or maybe the revision came back to the actual or the deviation between the actual and the forecast wasn't enough to enter a trade or maybe the report was released and the price was under a certain resistance which forbid the price to maneuver it, and that means you put in a LONG trade but you discover that the price went up, then assesses the resistance then turns back to the service amount and stops out you.


I confronted a lot of these problems and you'll confront it too if you don't follow the ideal technique while trading the news. My egy is quite straightforward and powerful:

1 -- Don't exchange all news trading reports, trade only those who make and define the direction of this trend (Interest rates, trade balance and NonFarm Payroll). Don't exchange these news trading reports simply because they're important it might happen that a report came then expected but do not make a move. I enter a trade only if the actual data came much worse or better (good deviation) and the revised info came together with the actual data and there is not any important conflicting report.

Two -- Another normal news trading reports can also be important; they're utilized to confirm or to close a trade especially when we are in the beginning of a particular trade; If you have just entered a trade and your current profit is between -20 and 20 pips plus a particular report is released and that report impacts the currency you're trading then we shut it because this report has a fantastic chance to stop you out. When you obtain many of pips then you might not depend on normal economic reports and rely only on technical analysis and continue your trade till you hit your goal.

Fundamental and news trading is a fantastic technique but we should use it together with technical analysis, and we must consider trading the important news reports, the connection between actual and Consensus, the revised information, the conflicting news trading reports as well as the support and resistance levels.



Writer: Joe Chalhoub