High probability forex trades; trading the news.
The last weeks we have seen some major forex market volatility surroundingeconomic news. Economic data tends to be one of the most important catalysts for short-term movements in the forex market and there is always some piece of economic data out there that traders can use to trade with a high probabilty chance of a profitable outcome. In this article I’ll share my method for trading that Breaking News!
First, let’s define the scope of this article. This trade strategy is basedon the magic of the “what if” scenario when breaking news hits the market. What if the news is bullish … , or what if the news is bearish … . If both sides of the “what if” scenario predict a profitable opportunity if the news goes that way, the breaking news can be traded.
Basically we wait for the market to react on economic news and try to estimate if the market direction stays the same, or reverses. Cause we are ready to trade both ways (either long or short), no real in depth knowledge of that particular market is needed. It can help you, but it is not required. ... It can also work against you; news and rumors are sometimes influenced by the big players
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