How I Straddle Trade the Big News Days
My preferred trading method consists of institutional order block retests, harmonic patterns and divergences. However I look forward to BIG NEWS days such as FOMC and NFP. These are days of extreme volatility that often pumped my accounts.
The method is simple.
*Use only on indeces or metals
1. One minute before news, look at the last swing high and swing low on the 15 minute chart.
2. Set a Buy Stop order on the last swing high with 10,000 pip TP and an SL of 200 pips with a trailing enabled.
3. Do the converse for the last swing low.
When news comes, price can spike either way and even trigger both. With a relatively tight trailing stop tail of 200 pips, the spike can drag the TSL several hundred to a thousand pips in profitable direction until a reversal. You profit at least one direction. Often, I profit two directions.
I've used this method with great success on ICMarkets and FXPro using Ctrader. The so-called slippage issues don't seem to impact my orders on these platforms unlike on other brokers.
Works great on
1. US30
2. USTEC/NASDAQ
3. UK100
4. DAX
5. China50/ChinaH/HK50/JP225
6. Gold
Not as great on
1. US500
2. US2000
3. AUS200
4. IT40
Do understand that this is a high risk high reward method.
The method is simple.
*Use only on indeces or metals
1. One minute before news, look at the last swing high and swing low on the 15 minute chart.
2. Set a Buy Stop order on the last swing high with 10,000 pip TP and an SL of 200 pips with a trailing enabled.
3. Do the converse for the last swing low.
When news comes, price can spike either way and even trigger both. With a relatively tight trailing stop tail of 200 pips, the spike can drag the TSL several hundred to a thousand pips in profitable direction until a reversal. You profit at least one direction. Often, I profit two directions.
I've used this method with great success on ICMarkets and FXPro using Ctrader. The so-called slippage issues don't seem to impact my orders on these platforms unlike on other brokers.
Works great on
1. US30
2. USTEC/NASDAQ
3. UK100
4. DAX
5. China50/ChinaH/HK50/JP225
6. Gold
Not as great on
1. US500
2. US2000
3. AUS200
4. IT40
Do understand that this is a high risk high reward method.
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