best forex news trading system This strategy will work provided your broker will allow you to trade this
way (currently at .exness, a Forex Broker, you can straddle
the market in this fashion). Please check with your broker first before
attempting to trade using this strategy. Because of the increased volume of
people wanting to trade the fundamentals, not all brokers can handle the
increased trading volume during announcements.

This strategy is called a straddle and was designed for trading in tight
trading ranges in anticipation of a fundamental announcement. It is very
important that there is a fundamental announcement to be released and that
the market range is between 20 and 60 pips. In order to trade a straddle
effectively, the market needs to create a tight level of consolidation before
the announcement, which, in turn, will provide a straddle opportunity. As a
rule, the longer the market has been in the range,
When you see consolidation forming before a fundamental announcement, turn to a smaller time frame
,
such as a 30-minute chart before going to a 30-minute time frame take confirmation from (4-Hours Chart). Place your
straddle orders five minutes before the announcement is made. Place a buy

 

order 15 pips above or north of the resistance level and 10 pips below or
south of the level of support, or the trading range. Why 15 pips above
and 10 pips below? All currencies have a bid-ask spread that is between
3 and 5 pips. Place your stop-loss orders 15 pips above the last high for the
sell order and 10 pips below the last low for the buy order. The reason your
buy entry order is 15 pips above the last high is that traders look at
bid charts, which reflect the selling price at a particular moment. Because
there is a spread between the bid and the asking price, we need to add the extra
5 pips to compensate for the difference. This precaution will keep you from
being taken into the market too early.

You should also consider not trading if the trading range of the consolidation is greater
than the amount of money you are willing to lose should
the trade not work out. Always remember that the market can break out in
either direction.

It is important that you create two trading plans with entry points, stop-loss orders, and limit orders for profit in both directions. It is also important to mentally work through
a “what if ” scenario. You need to remember
the market can go north or south. If the market goes south, look for past
levels of support to exit with a profit before the bears score any points and
begin pulling back. The opposite will take place if the buy order is triggered
first—look for past levels of resistance to exit with a profit before the bulls
score any points by taking out those highs or past levels of resistance. Bulls
also pullback after making a new high and scoring a point.

NOT ALL FUNDAMENTAL NEWS MOVE THE MARKET

In theory, the market should not move if the numbers from the economic or
fundamental report do not differ from the previous announcement. But
trading is not an exact science. The market can move whichever way it
wants, whenever it wants. If the market breaks out of consolidation and
triggers one of your entry orders and then returns into consolidation,
perhaps there was the mixed sentiment in the market and everyone is changing
direction. If the market breaks out of consolidation and returns back to
consolidation, technically the market will then go the other way, which is
why keep the second order in place, allowing you to take
advantage of the market reversal.

During any fundamental announcement, the market is very volatile—
anything is possible. If the market reverses, the only way to recoup your
losses after you have been stopped out by the first order is to have the courage
to leave the other order in and change direction. You must be agile as you

trade and you must be quick to change from being a bull to becoming a bear.
Charts talk, and you need to listen to what the market is telling you.
To be a good trader, you must trade by the chart and not by your heart.
You must listen to the market with your eyes and respond accordingly with
no feeling or emotion attached to any given trade.

 

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