![]() This is because, hypothetically speaking, a trade on the 4 hour chart has a greater chance of running to profit before the news event occurs. The time frame – On average, a trade on the 4 hour chart will require less time between the entry and the pending news than a trade on the daily time frame.Every trader is different and therefore has different requirements when it comes to how risk averse they are. The trader – Trading style and risk tolerance come to mind.This is a hard question to answer as it depends on a few factors. You have nothing at risk and you get to objectively analyze the price action that forms as a result of the news.īut what if the news isn’t just around the corner? How much time is needed between putting on a new position and a scheduled news event that could adversely affect that position? This is obviously the safest place to be with major news around the corner. ![]() For example, trading USDJPY with Nonfarm Payrolls (NFPs) on tap. All of the scenarios below assume that the news event in question would hypothetically impact your trade. ![]() The reason we want to use the Forex Factory calendar is to know when market-moving news is expected and thereby avoid or prepare for periods of high volatility.Īs such, I want to run through a few basic rules when it comes to trading around the news.
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