basket Trade
Trade News NFP atau News yang High Impact
For the news trader in you:
a) Review the weekly economic news as presented in FF or any other forum.
b) Make a schedule for your trading say about 15 min before the major news.
c) Do not enter the trade before the news unless you have very reliable insider information.
d) Enter your trade about 5 min after the news results.
Custom Indicator to use:
• BTS-News & BTS-EntryIndicator
Indicators Characteristics:
• BTS News is a price action indicator. I took the values of all the Buy pairs and represented them in a single blue line. Also took the values of all Sell pairs and represented them in a magenta line. Time coverage for market scan is 12 bars.
• BTS-EntryIndicator is similar the BTS News in its creation. I has a wider scope of time coverage depending on the inputted Reference Time
Recommended Chart Time Frame:
• BTS News is best attached to 5 min. chart for faster reaction to Economic News Release. With its 12 bars coverage, it will read the market sentiments in the past hour prior to the news.
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(The BTS-News Indicator) Good for NFP
Entry Criteria:
• Previous experiences found that the crossing at the zero line of Blue and Magenta line is a good entry signal. Blue line going up is a Basket Buy while a magenta going up is a Basket Sell.
• Some conservative traders waited till the top line reaches a value of 150 before entering into a trade.
• Aggressive traders, after waiting for 5 min after the release of the News are looking for a hooking up of the bottom line and enter the hook up line. Also reported a very profitable criterion to enter.
• It is always prudent to wait for 5 min. after the release of the news before any entry to the market. The 5 min gap will give regular traders time to digest the results of the News and to enter their position.
News Trading Literature:
There are days or even weeks where news and economic events dominates the market direction. Most traders call it the fundamental rule of the market.
A good example of this is the week leading to the release of USD Non-Farm Payroll. The release of the NFP is normally on a Friday once a month. The week when it is released is called the NFP week. It is this week when fundamental rule over the Technical Analysis of the market. This is normally dominated by important news releases and speeches from important world economic leaders.
It is also at this week that newstraders enjoys trading as the NFP report normally can make 80 to 100 pips moves on some popular pairs e.g. EURUSD or USDJPY or GBPUSD.
Economic News Releases serves as fuel for our basket of currencies to make a substantial move. Market will be slow during the absence of this report. We would normally timed our entry of the basket about 5 min after a major economic news. We enter according to the direction given by our news indicator.