How To Trade Forex Based News (News Trading)
Basically, Forex Trading on News (News Trading) is a trading technique by comparing the difference between the actual results of economic news to the value of forecasting (prediction) of such news.
Generally, if the difference between actual value and the value forecastnya quite large, the price movement will be more drastic than if the difference is small or in accordance with the prediction. But again, there are other factors that you need to consider if you want to use the technique Trading News
Important factors to be considered for News Trading:
1. The types of economic news everything considered important by the market and potentially causing substantial price movements (drastically). The more important then the price movement that usually occurs is also greater
2. How big is the difference between actual and forecast values (predictions) from the news. The greater the difference in the actual value of the forecasts, the greater the price movement that occurs
3. Daily High-Low Range (Range) A few moments before the news was announced. The smaller the daily range of the relevant currency before the news announcement, typically relatively larger price movement
4. Pair type of currency you use, the enlarged spread, and slippage. There was a certain pair of little "odd", because although there is news that should be important enough to pair it, but it did not happen quite large price movements, there are even times when prices barely moved. There are some forex brokers who deliberately encouraging the spread as an important news announcement. Also often occur slippage (prices do not fit) between the price that you order with which you get.
Basically, Forex Trading on News (News Trading) is a trading technique by comparing the difference between the actual results of economic news to the value of forecasting (prediction) of such news.
Generally, if the difference between actual value and the value forecastnya quite large, the price movement will be more drastic than if the difference is small or in accordance with the prediction. But again, there are other factors that you need to consider if you want to use the technique Trading News
Important factors to be considered for News Trading:
1. The types of economic news everything considered important by the market and potentially causing substantial price movements (drastically). The more important then the price movement that usually occurs is also greater
2. How big is the difference between actual and forecast values (predictions) from the news. The greater the difference in the actual value of the forecasts, the greater the price movement that occurs
3. Daily High-Low Range (Range) A few moments before the news was announced. The smaller the daily range of the relevant currency before the news announcement, typically relatively larger price movement
4. Pair type of currency you use, the enlarged spread, and slippage. There was a certain pair of little "odd", because although there is news that should be important enough to pair it, but it did not happen quite large price movements, there are even times when prices barely moved. There are some forex brokers who deliberately encouraging the spread as an important news announcement. Also often occur slippage (prices do not fit) between the price that you order with which you get.
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