This is due to the emotions from the news release subsiding allowing a trader time to plan a technical set up for their trade. Regardless of your trading approach to news trading, risk management and utilizing small amounts or no leverage is critical to maintaining capital in your account to make the next trade. US economic data is so influential within global currency maekets that it is generally seen as the most important news. Additionally, it is important to note that not all news releases lead to increased volatility.

Rather, there are a limited number of major news releases that have previously produced the greatest potential to move the market and some of these include:. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. Forex trading involves risk. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

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Rates Live Chart Asset classes. Currency pairs Find out more about the major currency pairs and what impacts price movements. Commodities Our guide explores the most traded commodities worldwide and how to start trading them.

Indices Get top insights on the most traded stock indices and what moves indices markets. Cryptocurrencies Find out more about top cryptocurrencies to trade and how to get started. Fed Bostic Speech. Fed Williams Speech. Business Confidence MAR. P: R: Company Authors Contact. Long Short. Oil - US Crude. Wall Street. Dow to Outperform vs. Dollar Advances More View more. Previous Article Next module. O ther articles in this series: An introduction to forex news trading How to trade before a news release Trading FX during a news release Post-release trading strategies 1.

Trend following strategy This strategy involves the use of multiple time frames , as well as, well-defined levels of support and resistance that come into play after a news release. The following 4 points are of assistance for this type of trade: Determine trend direction on a daily chart Draw support and resistance lines Select a forex time frame anywhere from 1 — 4 hours Buy near support in uptrend and sell near resistance in downtrend Keep in mind that news releases have the potential to break through longstanding levels of support and resistance which underscores the importance of using tight stops when pursuing this strategy.

Recommended by Richard Snow. Use this strategy at your own risk. It is not recommended to use this strategy on the live account without testing it on demo first. Do you have any suggestions or questions regarding this strategy? What Is Forex? Up to USD. Please disable AdBlock or whitelist EarnForex.

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Thank you! Features Circumvents spread widening and slippage problems. Fundamental basis for a trade. Simple setup. High success rate. Important news events are quite rare. A broker with low spreads and high quality trade execution is required. How to Trade?

Choose an important news release that has a high impact on Forex pairs. Open Buy and Sell positions one minute before the scheduled news release.

Forex trade strategies and goals

It will help you to protect the trade from slippage and widened spreads. Set stop-loss for both positions to standard pips depending on the expected news volatility. It will provide the necessary risk-to-reward ratio.