If you’d like to trade forex news, then try out this
1 minute forex news trading strategy.
The thing about forex trading is that every month, the forex calendar has important news announcements like; the non farm payroll (Jobs Report), interest rate announcement, unemployment rates and more. These generally tend to move the market prices from anywhere from 50-200 pips plus in just a few seconds to minutes.
You get the direction of your trade right and you can be staring at 100 plus pips of profit in seconds… that’s $1,000 profit in minutes, if you are trading 1 standard contract.
- Trading Timeframes: 1 minute
- Currency Pairs: EURUSD, GBPUSD, USDJPY, AUDUSD, NZDUSD, USDCHF
- Forex Indicators: None required
The 1 Minute Forex News Trading Strategy
If you’ve been trading forex during news times, you will notice something happens a few minutes after the new is released. For example, lets say that the US Federal Reserve increased the interest rate. Expect price to shoot up.
But after a while, the price will fall back down making lower high. And then the next candlestick forms and breaks past the high of the previous candlestick and price again continues to go up.
So this 1 minute forex news trading strategy is about trying to execute a trade on the retrace. So you are not straddle trading news. You simply wait for a reversal and watch price action when you see continuation happening.
Forex Trading Events Calendar
In order for you to trade this system, you need to know at what dates and what times the major forex news are going to be released each month.
You need a forex calendar, and the best place to get these would be over at the ForexFactory.com calendar.
Buy Trading Rules
- Head over to ForexFactory.com and see what time the news is scheduled to be released.
- A few seconds after the news is released, refresh the Forex Factory page, so that you will see the figure(s) of the news.
- If the news is good for the base currency, price will shoot up, if its bad, price will fall down.
- Switch to the 1 minute timeframe (if you are using that) and watch the candlesticks highs or lows.
- For A Buy setup, if the news is good and currency shoots up, you will see the 1 minute candlesticks making new highs and higher low. Then price will start to reverse and what you will see is that the highs will be lower and the lows will be lower than the previous candlesticks.
- You buy signal will be when a candlestick breaks the highs of the previous candlestick. You immediately buy at market price.
- Set your stop loss at 15 pips and set your take profit target at 45 pips (3 times what your risked).
Sell Trading Rules
For sell setup, its the exact opposite.
Here’s an example of a sell setup so you get the idea of what I’m talking about here:
Advantages of The 1 Minute Forex News Trading Strategy
- You can avoid the initial price whipsaws that tends to take out a lot of straddle trades, that have stop losses close close due to increased spread during news release times.
Disadvantages of The 1 Minute Forex News Trading Strategy
- 1 minute candlesticks that have lengths of 40-50 pips right after news releases should be avoided.
1 Minute Forex News Trading Strategy Pdf
Posted by: derivbinary.com