How to trade high impact news events?
A complete guide
A thread🧵
A complete guide
A thread🧵
~start
First,
Let me tell you where I prefer to find these events.
I use the website @ForexFactory
There are other websites you can use but most of the prop firms use this website too.
I do this as a part of my routine before every trading week begins:
First,
Let me tell you where I prefer to find these events.
I use the website @ForexFactory
There are other websites you can use but most of the prop firms use this website too.
I do this as a part of my routine before every trading week begins:
You can select your desired pair and the news events for the week.
- Date range
- Currencies
- Expected impact
Here we focus on these 'red folder news' which cause the maximum impact in the market.
Now how does this affect price? x.com
- Date range
- Currencies
- Expected impact
Here we focus on these 'red folder news' which cause the maximum impact in the market.
Now how does this affect price? x.com
These events are used as a 'smoke screen' by the algorithm to trigger a sentiment shift and aggressive moves towards liquidity pools.
As you know by now,
Liquidity lies in:
- High or Lows
- Fair Value Gaps
So, we take advantage of this information.
As you know by now,
Liquidity lies in:
- High or Lows
- Fair Value Gaps
So, we take advantage of this information.
We find the liquidity pools right before the news events.
Wait for price to purge the HTF high/low or return into a fair value gap.
1) If price is in consolidation, expect expansion
2) If price is in expansion, expect a reversal. x.com
Wait for price to purge the HTF high/low or return into a fair value gap.
1) If price is in consolidation, expect expansion
2) If price is in expansion, expect a reversal. x.com
Characteristics of major news events:
Non-Farm Payroll Week = Usually a one-sided move. No new positions after Wednesday's New York Session.
FOMC = There's usually a judas swing forming the weekly swing point and then reverse into the opposite direction.
Non-Farm Payroll Week = Usually a one-sided move. No new positions after Wednesday's New York Session.
FOMC = There's usually a judas swing forming the weekly swing point and then reverse into the opposite direction.
How to trade these news releases?
No trades in the 10-minute news window.
For example:
If the news event is CPI which is at 8:30AM.
No trade window 5 minutes before (8:25) & 5 minute after (8:35) x.com
No trades in the 10-minute news window.
For example:
If the news event is CPI which is at 8:30AM.
No trade window 5 minutes before (8:25) & 5 minute after (8:35) x.com
Then,
Almost 70% of the time you get a clear orderblock entry targeting the next liquidity pool.
Orderblock -> Expansion. x.com
Almost 70% of the time you get a clear orderblock entry targeting the next liquidity pool.
Orderblock -> Expansion. x.com
~ end of thread
If you like this guide, consider engaging with this tweet for more such educational content.
If you have any questions or suggestions, you can let me know in the comments below.
Have a great week ahead!
If you like this guide, consider engaging with this tweet for more such educational content.
If you have any questions or suggestions, you can let me know in the comments below.
Have a great week ahead!
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