Economic Indicators

[Baruch]

Originally posted by bhale
Here's a good article on trading the news

http://www.pfxtrade.com/news/commentary.asp?Act=V&ID=475&Se=&SeP=12&SF=

Here is a great web site for explaining things

http://fidweek.econoday.com/calendar/US/EN/New_York/year/2004/month/08/day/03/daily/index.html

And here is some real food for thought. This from an article by a 20 yr forex trader

I have been trading news for a long time; as traders catch on I know the window of opportunity will slowly close; it has already begun. On-line brokers are refusing to accept stop loss entry orders around significant news time. Currencies are moving 50 points or more within a minute of major release.



Banks are getting the “news trade” orders from the on-line brokers and waiting until the market becomes super-thin less than a minute to release time and then “running” the stops (forcing the market higher or lower to levels where significant amounts of stop loss orders are; the purpose is to eliminate event risk for the Bank and also to make profit from the orders). Obvious examples are April 8 and May 7 non-farm payrolls. On April 8 the EURUSD moved 50 points lower in two minutes prior to non-farm payroll release; on May 7 EURUSD moved 70 points higher in one minute prior to release.

Caveat Emptor

OK, but then you must play the news without those stops. Most of the time I think it's a good idea to go against the consensus of the market - before the news.