There are a lot of ideas people have about trading Forex on the release of scheduled market-moving news events. Some stress range breakouts, others "reading the fundamentals" and trying to decipher what it means for the underlying currency, others deferring to indicator readings of some type or other. What I can tell you about those ideas, having studied news intensively for years and having compiled a multi-year statistical database of news trades, is that none of those approaches makes any sense. Does that sound like a boldly self-righteous claim? If so, consider these facts:
1. Strong reactions to news often happen so fast that if you are taking the time to read and digest "the fundamentals", the trade will have passed you by leaving you completely on the sidelines by the time you've got it all figured out.
2. The notion that news always produces a "logical" response (home currency appreciation on good news, and vice versa on bad news) has proven itself over and over to be a faulty assumption. Often, bad news results in a rally, and good news results in a selloff.
3. Because of the fast moves that price makes on news, if you try to get in after-the-fact, you will have a tough time getting a fill, and the hectic strain of trying to catch a fast-moving market will leave you
For all of those reasons (and more), we have been working with a news trading methodology for the past 18 months which involves getting in BEFORE news breaks, based on one of two types of recurring technical patterns that can be encountered just ahead of news-time. In our complimentary video presentation for this week, we are going to provide free access to the Weekly Trade Recap that was posted in the FOREX NEWS BREAKOUT member's area (our third for this week), which documents the setup and aftermath of the winning USD/CAD counter-trend short trade which occurred on the release of Canadian employment news 13:30 GMT on Friday of this week. This will show you, if you know the telltale signs to watch out for, whether to be looking for a trade on the news at all, and if so, in which direction - even before the actual data is released!
To view our members'-only Weekly Trade Recap video on Friday's USD/CAD news trade, simply use the following link, for which you will not be prompted for a password:
To Your Trading Success,
& the Forexmentor team
P.S. To learn more about Forex News Breakout, please visit our public information page: http://www.forexmentor.com/fxnewsbreakout/index.php