XAUBOT Pro: It’s always better to anticipate a problem and be ready to receive it in the best way possible than to be caught off guard and surprised by the sudden impact of the change in the market. One of these things that ought to be anticipated are the medium impact news, which are far more common than high impact news.
There are of course news being released and published that pertains to the foreign exchange market all the time. But as you know not all of them will incur the same level of influence on the market as the others. As such we have some news cycles with a much heavier and higher degree of influence. Then there are those with a less powerful punch, which we call medium impact news.
Because this type of news is more common, you need to be more prepared for them as well. Let’s see how you can actually leverage the features of XauBot Pro to handle this side of trading in forex.
Take a look at: Personalizing News Event Display Exploring Line Style Options in XAUBOT Pro
Why Are Medium Impact News More Common in Forex?
Let’s take a look at why and how medium impact news is so often in its occurrence in the forex market. As we discussed above, there are a lot of different news being published and released all the time that influence the forex market in one way or another.
But the thing is that all these different news cycles and news events have different impacts on the market. Some are called high impact news, such as critically important financial reports such as the announcements related to inflation, interest rates, and GDP. But then there are other news events that are categorized under the title of medium impact news.
These are news that are more regularly occurring as opposed to high impact news which are less frequent. This is because a lot of different news categories can come under the group of medium impact news.
These would be news that are published on a regular basis, such as monthly releases or quarterly and annually. These would be financial reports that are less important such as monthly data related to employment and unemployment rates in addition to other economic criteria like trade deficit or consumer confidence and so on and so forth.
The thing about medium impact news is that they are frequent. What does that mean for you as the trader? Well, it means chances are that you will encounter them much more than high impact news.
It is precisely for this reason that you need to have a higher level of readiness for them. But what exactly makes a medium impact news to have a medium impact?
The reason can be found in the small degree of impact that some news has that they are categorized as medium. But even the smallest news, if pertained and related to the forex market, will cause volatility nonetheless. This is why you need to have a strategy prepared to receive the news, i.e. what to do before the release of the news, and also how to handle when it has come and gone, i.e. what to do after the news has been released and left its impact on the market.
Doing just one of these can be difficult enough. But doing both at the same time and considering both together can be quite a challenging feat for any trader. Especially in light of the fact that medium news is frequent.
Luckily, XauBot Pro has features that can help you with both of these. Let’s see how.
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Medium Impact News Pauses with XauBot Pro
It is time to see how a truly intelligent trading solution, albeit intelligent and automated trading solution, can handle the release of medium impact news in forex.
First of all, XauBot Pro has a feature or parameter known as news filter. This is the general parameter that allows this trading tool to handle the fundamental analysis aspect of things in the forex market.
As the name suggests, the news filter will provide the users with the chance to instruct the expert advisor to take stock of the news that are influential in the forex market and weigh in their impact.
Then there are smaller parameters that are part of this overall feature of the expert advisor. These smaller parameters are each designed for a special circumstance in the market with respect to fundamental factors.
In this case we are of course discussing medium impact news and the parameters that relate to it. There are two in particular as follows:
- Stop Trading Before Medium Impact News: with the help of this feature you can set a number of minutes for the expert advisor to stop all trading operations before the release of a medium impact news, and in this way your assets will remain safe from the upcoming fluctuations. Before the release of a news, the market can still be steeped in anticipation and thus experience uncertainty and fluctuation all the same. So this feature will provide you with a heightened layer of security.
- Stop Trading After Medium Impact News: the second parameter related to medium impact news will put a moratorium on trading after the release of medium impact news. Of course you are in charge and you get to decide how long the expert advisor will stop trading after the news. This feature will go a long way in protecting your account balance from the heavy fluctuations that the market ought to be experiencing after having been hit with the weight of the news.
Take a look at: Power of Display Lines for News in forex Analysis in XAUBOT Pro
Conclusion
There are so many different kinds of news being published all the time. This news can be categorized under the group of finances and also those that have a political or geopolitical impact. Another category is to weigh their influence. As such some news will be high impact and others will be medium impact. In this article we discussed medium impact news and why they are so common. We also discussed how XauBot Pro, the intelligent and automated trading tool can take on the problem of fluctuation and price volatility with respect to medium impact news in the foreign exchange market.
