If you want to boost your forex Trading Strategies level and be able to increase your professional status as a trader, you need to get into fundamentals. This means you need to get a grasp of what fundamental factors are and what fundamental analysis is. At the heart of all this lies the concept of news in the market and the impact thereof.
The forex market is heavily influenced by the release of important economic and geopolitical news due to its nature of having foreign currencies as its main financial instrument. In this article we are going to take a look at some of the strategies that you can implement to optimize your trading experience with respect to news trading in forex. We will also show you how you can take advantage of the features provided by XauBot Pro to facilitate this process further.
Take a look: Implementing Stop Trading Before High-Impact News in XAUBOT Pro
Trading News in the Forex Market
Before we discuss some of the best strategies to trade the news in the forex market, perhaps it would be best to see why it is prudent to trade during the release of important news in the forex market in the first place.
You see, when important news is being released that pertains to the forex market, such as important financial news and high value geopolitical news, the foreign exchange market undergoes a certain reaction.
This reaction is seen through the mere impact of the news that creates. Due to the nature of the news being released, it can create a sense of uncertainty among traders or other market participants. This feeling will in turn give rise to uncertainty in the market itself.
In simple terms, the release of news can cause price volatility in the market. Now this volatility can vary quite significantly given the nature of the news being released and the impact accredited to it. As a result, we can have high impact news and also medium impact news.
Therefore, it can be understood how traders, specially scalpers, will be willing and in fact quite eager to take advantage of this volatility that is caused with respect to prices in the market.
But at the same time volatility is volatility. This means the concept itself is not without its risks and threats. This is precisely why some traders opt to stay out of it altogether and now trade during the release of news.
Take a look: Strategies for Post-High-Impact News Trading Pauses in XAUBOT Pro
Strategies to Trade Medium Impact News
If you do indeed choose to trade the news in the forex market, you must find the best and most optimized strategy in order to stay away from the dangers and threats that are associated with the times during which news is being released.
As such there are three main approaches that can be taken with respect to the strategy that you implement for news trading. Let’s discuss them shortly.
First of all, you can trade before the release of news based on a short term approach to trading. This is because there is a lot of speculation before the news is released and so things can change very quickly. And that is why the approach that a trader ought to have is a short term approach so that they are not the ones sustaining losses as a result of quick changes.
Secondly, you can trade while the news is being released. This is going to be carried out based on the support and resistance lines. One general approach is to go long when the resistance line is broken and go short when the support line is broken.
Third and last approach is to trade after the news has been released. The main approach here is to follow the trend that is taken shape and form after the impact of news has been settled in the market.
These approaches can help you optimize news trading in the forex market. And now let’s see how XauBot Pro can help you take optimization further in this regard.
Take a look: Navigating Market Volatility with Money Flow Limits in XAUBOT Pro
Optimized News Trading with XauBot Pro
Now let’s turn to XauBot Pro and see how this smart and intelligent automated trading solution can help you with the release of news and the trading process in the forex market. This time with medium impact news.
When a news has medium impact in the market, the expert advisor XauBot Pro has provided users with two main options.
First of all, you can set the EA to stop trading before the release of the medium impact news. For instance, you can set the number of minutes as 90 and as such have the EA to stop trading for 90 minutes before the release of such news. This can help you stay away from the short term and quick changes that could take place at any time in the market.
On the other hand, you can opt to stay away from trading after the release of medium impact news as well. Similarly, you can also set a number of minutes for the EA to refrain from trading after the news has been released. Similarly, when the EA is instructed not to trade after this news has been released, then you can also be safe from the trend changing process that is in motion after medium news impact has been released.
Take a look: Insider’s Guide to RSI and Bollinger Band Alarms in MetaTrader in XAUBOT Pro
Conclusion
A smart forex trader is definitely one who can implement fundamental analysis and take advantage of this knowledge in their process of trading. Similarly, a truly smart expert advisor is one that can do the same thing!
That is why in this article we sought out to show you how XauBot Pro is equipped to handle the release of medium impact news in the forex market by given this option to users to halt the trading process before and after news.
