Trading the News – Forex Trading Strategy from Alertel V series buy sell signal software
So far we have discussed many Forex trading strategies that allow us to analyze the price action from many different angles. These strategies give us the technical but there’s one factor that always has the potential to make all of the technical irrelevant and just take the market in every way that it likes. Big announcements or news coming out of different countries can have a huge effect on the market, rendering all our analyses meaningless.
The Forex market is a 24-hour market and news can always come in from all over the world. Trading based on economic news and data can fit any kind of trader wherever he might be and whichever currencies he chooses to trade. If you’re in Asia and like to trade the YEN, then there’s news from Japan almost every day. If you like AUD or NZD then you have to watch out for news out of Australia, New Zealand and China. Same goes for EUR, GBP and USD; you have to check the news during the morning and the afternoon if you live somewhere close to European time zones.
In stocks, major news is considered the announcements of company earnings, profits, profits per share, industry, macro-economic data etc. In Forex, news that moves the markets is Central Bank minutes and members press conferences, inflation reports as well as national and international economic news and data. One of the first lessons for new traders is that when trading you should keep out of the market during major news releases. Nevertheless, we often find ourselves trading during the news and most of the time it’s not simply a matter of greed. Some like the adrenaline, some are addicted, but the majority of traders just like the profits. After all, we are in this business to make money and the risk is just a necessary aspect of that.
Trading currencies always involves two currencies, so when a trader plans to open a position both countries’ upcoming news should be taken into consideration. Other international news that can potentially affect the pair should be considered too. For example, if you decide to trade AUD/JPY, apart from valuating possible outcome of the news out of Japan and Australia and the effect that it might have on the pair, you should consider important upcoming news from Europe, USA or elsewhere because that news might give a shock to the financial markets. For example, if there was really good economic data released from China, the pair would rally because it means that demand for Australian products will most likely increase. The opposite would happen if there was really bad news from Europe; it would shock the global financial market and the traders would run for safe heavens like YEN and CHF.
Of course news trading isn’t as easy as it sounds, especially when you’re a retail trader and banks and hedge fund traders have access to all the quickest news feeds and inside sources. High frequency trading (HFT) algorithms, for example, are able to analyze and react to economic reports in a split second, making it impossible to compete.
The solution then is to stick only to the biggest news releases that actually move markets and to use your intuition to take the best risk: reward positions.
In some cases you may want to take a position before the news item comes out. That way you may be able to manage your trade and get in before the move. Again, it’s not easy but big profits can be made if you get on the right side of the trade, as proved by these traders who gained illegal access to economic statistics and made millions.
- Below are the most important economic data and news and their effect on the country’s currency if the numbers beat expectations:
- GDP –> (+) Good
- Unemployment Rate –> (+) Bad
- Inflation (consumer and producer prices) –> (+) Good
- Interest Rates –> (+) Good
- Trade Balance –> (+) Good
- Retail Sales –> (+) Good
- Services and Manufacturing PMI –> (+) Good
- Consumer and Business Sentiment –> (+) Good
- Unemployment Claims –> (+) Bad
- Home Sales –> (+) Good
Now that we’ve established the importance of understanding the news and the effect it might have on the price, we have to learn how to use news releases to our advantage. There are two ways to trade the news, long term and short term.
Long Term News Trading
When looking for long term trading opportunities based on economic news we should try to collect the previous and current data and analyze it to see the bigger picture and the effect that it might have on the currency. The long term trends are created by fundamental factors, which are many economic pieces over a certain period of time, because sometimes news needs days and months to be absorbed by the market.
Looking at the GBP/USD chart below we can see that an uptrend started to form a year ago and it has been a one way journey since. Similarly EUR/GBP has been in a downtrend for about the same period. But these things didn’t just happen out of the blue. The economic data that came out of Britain during the past 2 years or even longer has made this possible. Most of it has been pointing out a recovery of the British economy way before the trend started to form. If a trader read and analyzed the data correctly, he/she would have bought the Pound during last summer and pocketed about 2,000 pips.
But if you make mistakes or become greedy, there is equal chance of losing money. If you want this to be possible please do not use your brain and trade. It is not because you are a fool, but you are an emotional being. All humans are. The emotions can affect your judgment. Our system is not emotional rather it is disciplinary system that cares about making just profits. So either you listen to Alertel V series Platinum or you do not.
Alertel buy sell signal software generates Highly Successful Buy Sell Signals for Nifty Future, Bank Nifty Future, NSE Stock Futures, Nifty Call Put Options, MCX Commodity, NSE Nifty 50 Equity Stocks and NSE Currency Auto Buy Sell Signals with Live Charts & Real Time Trading Text. Alertel buy sell signal software’s Positional signal systems and time frames generate Highly Successful Buy Sell Signals for NSE 100 Equity Cash Stocks on Daily Chart with Intraday Chart Updating for Current Day.
Alertel V series Platinum works well with real time data for the following segments.
- FOREX (International)
- MCX
- MCX SX (INR against International currencies)
- COMEX
- NYMEX
- NCDEX
- MCX SX
- METALS
- CRUDE
- NSE
- NSE F&O
- NSE Cash
- CFDs
- INDICES
Real time data feed for MCX Commodity, NSE and FOREX
We furnish real-time data for mt4 in unique segments; we are the leading mt4 data supplier for MCX, NSE, NIFTY, FOREX and Commodities. Our data are most safe considering we get live data from the world’s best servers used by the banks. We charge affordable fees for mt4 data. Mt4 will help the traders to add many templates, so as to support to grasp the development of the market of specific conditions.
Features of Alertel Commodity Buy sell signal software
Alertel commodity buy sell signal software automatically searches better opportunities in all scripts. All best Technical signals will come only after getting confirmation by all four confirming filters in Technical Indicators, Historical Price, Averages, Bands, Pivot Levels, and Resistance & Support Levels Volume & most important it shows Up/Down Trends and this commodity buy sell signal software is used by Individual Traders, Brokers, Sub-brokers, Advisory companies & Tips providers. The techniques in this software are unique and easy to learn & use. So don’t waste time and money in buying tips blindly when you can understand the market, make profit by yourself. So this software is your right guidance and friend for life.
Language support – Our Able customer support can support you in the following languages
- English
- Arabic
- Hindi
- Malayalam
- Kannada
- Tamil
- Telugu
- Oriya
- Bengali
- Marathi
- French
- Latin
- German
Free Re-Installation, free future updates and USB installation of commodity buy sell signal software
Time to time you may have to format or install the software into a new computer and may be you want to trade in office. We will re-install the software free of cost and we can install MT4 with Alertel commodity buy sell software into your USB where you can connect at your home as well as office.
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Abstractct report :https://www.alertelsystems.in/reports/
Detailed report : https://www.alertelsystems.in/reports/detailed.html
Alertel buy sell signal software for online MCX commodity trading offers Live Charts with Auto Buy Sell Signals and technical analysis software for daytrading in FOREX, MCX and NSE, Text and Voice Alerts for Intraday stock Trading in MCX Commodity, Nifty Stocks, Nifty & Bank Nifty Future, NSE Stock Futures, Nifty Put Call Options, NSE Currency Forex and NSE 100 Stocks for Positional Trading with Charts & Alerts.
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Be it intraday daytrading trade or position trade Alertel buy sell signal software provides accurate buy sell signals for both forex and Indian stock market like MCX , MCX SX , NSE and nifty stocks, making it the best buy sell daytrading signal software in Indian and the world.
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