Trading the news - how?

[fuzz.a]

I'll check it, so what about news?

[TraderPierre]

Originally Posted by fuzz.a

I really haven’t seen such things in classical books...

You won't because it's a load of garbage!

chakki says "We get news every day and it’s important for trader to identify the trend direction to be ready for the orice movement on the news. Having a bullish trend at EURUSD, any negative news from the United States will lead to a powerful growth of Euro."

So let's put it to the test and look at the latest data out, US Consumer Confidence due at 10am EST

He says we have to look at the trend. Eur/Usd trend is bullish.

He says "any negative news from the United States will lead to a powerful growth of Euro."

So according to him if the news is negative we should Buy eur/usd and expect a 'powerful growth'

Consumer Confidence data came out worse than concensus for US and guess what....eur/usd fell more than half a cent!!!

So much for that strategy

[TraderPierre]

....I know you guys love something visual so here's a little chart to illustrate.....

[daem0n]

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[Depth Trade]

I find the way to trade News is to first have an idea of the direction you plan on being in, then have a way to technically enter.

Have your direction defined, then watch for news as spreads widen, when spread has returned normal you know that volotility has lowered.

Enter at this point and possibly use extreme price at widest spread point as your StoppLoss.

DT

[fuzz.a]

Originally Posted by TraderPierre

You won't because it's a load of garbage!

That is exactly I've started to guess not long before... But you see my mate, I need some basis to stand upon. Haven't even suspected that it's some kinda shaking surfboard.

chakki says: "We get news every day and it’s important for trader to identify the trend direction to be ready for the orice movement on the news. Having a bullish trend at EURUSD, any negative news from the United States will lead to a powerful growth of Euro."

Well, I see it's just one side of the truth. We've gotta add some spice and gotcha! Hey, amigos, give me that spice, yeah, please!
The idea about spreads widening seems to be... that I've heard about it somwhere... As well I'd add that broker's slippage shift to the "correct" direction could be another indicator, couldn't it?

[TraderPierre]

Originally Posted by fuzz.a

That is exactly I've started to guess not long before... But you see my mate, I need some basis to stand upon. Haven't even suspected that it's some kinda shaking surfboard.


Well, I see it's just one side of the truth. We've gotta add some spice and gotcha! Hey, amigos, give me that spice, yeah, please!
The idea about spreads widening seems to be... that I've heard about it somwhere... As well I'd add that broker's slippage shift to the "correct" direction could be another indicator, couldn't it?

Say what

[fuzz.a]

Off topic, but
Whatver you say, I haven't met a sucessfull trader who did not know the basics from classicists. Even if onr claims that he is "pure fundamental analyst", TraderPierre not counted.
Aswell I appreciate DiNapoli's works and see no reason to be a trader myself without partly mechanical system.

B.t.w. I've recently found a blogged guy working on the Masterforex-V system, or he says so. This system doesn't miss the sense, though