How I trade News with high probabilty and a Great RRR :)
Trading news can often be a nightmare especially trying to trade at the time of release as brokers often widen their spreads
and slip orders to the extreme of the spike.
This is a high probability method with Great RRR
As you can see the market spiked up on worse then expected AUD GDP news.
then the market went into a consolidation, and this is key to finding great entries.
After the market consolidated for at least 60 minutes, look for a support level for a buy
and a resistance level for a Sell.
Place a limit order at the support/resistance level with stop appropriate for the pair.
(in this example I am trading GBPAUD - my fav, so I use a 20 pip stop)
Place your profit target at 5x your stop. This gives you a Robust 5-1 RRR.
let the trade unfold. If you have any questions, either place them in the comments or message me
Hope this helps :)
Allen
and slip orders to the extreme of the spike.
This is a high probability method with Great RRR
As you can see the market spiked up on worse then expected AUD GDP news.
then the market went into a consolidation, and this is key to finding great entries.
After the market consolidated for at least 60 minutes, look for a support level for a buy
and a resistance level for a Sell.
Place a limit order at the support/resistance level with stop appropriate for the pair.
(in this example I am trading GBPAUD - my fav, so I use a 20 pip stop)
Place your profit target at 5x your stop. This gives you a Robust 5-1 RRR.
let the trade unfold. If you have any questions, either place them in the comments or message me
Hope this helps :)
Allen
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