Whenever something big happens in the market, whatever it may be, there are two main approaches: XAUBOT Pro that traders and market participants take: those who sit it out, afraid of the muddy waters that cannot be seen though, and those who go all the way in trying to catch the most fish even if they have to get muddy themselves.
This is kind of what happens in the forex market after a high impact news event has been released. It comes hard. It hits the market hard. And it leaves a trail behind its serious influence in the market.
It is crucial for you to know what to do after high impact news in the forex market. That is why we are going to discuss this very matter in this article and see how you can manage the period after a high impact news has been released with the help of the intelligent trading tool XauBot Pro.
Take a look at: Insider’s Guide to RSI and Bollinger Band Alarms in MetaTrader in XAUBOT Pro
Is Profitability Possible After the Release of High Impact News?
The question that we want to answer in this section is: will it be possible at all to obtain profitability after the release of high impact news in the forex market?
You need to understand that the nature of a high impact news is that it will cause ripples through the market. In other words, it will cause a whole lot of disruptions in prices.
So in a news cycle, the period immediately following the release of news is when things are most volatile because things have not settled down and anything could be expected from the market.
This means, even if you have decided to open positions in this situation, you need to be extremely cautious not to get swept away in the extreme uncertainty of the market.
So what is the best approach to deal with such uncertain movements in the market? Well, there are different approaches to employ, but there is not one that could prove to be quite useful to deal with fluctuations.
The thing about extreme fluctuation is that you could be taken out of the blue by the changes that occur too quickly. That is why one good strategy is to just rely on support and resistance lines.
What does this mean? It means you should never move against these lines in the market. Only open a new position when these lines are broken or when these lines quite evidently support your move. If you are unsure about the support line, then do not open a long position. Similarly, if you are unsure about the resistance line, then it would be foolish to open a long position.
You could simply wait for these lines to be broken and open the position accordingly. In simple terms, when the resistance line is broken through, you can go long and then the support line is broken through you can opt to go short.
But at the same time keep in mind that this is only a general approach that cannot be dependable under all situations. After all, we are talking about how to address and deal with uncertainty. The entire nature and premise that we are dealing with is uncertain.
So we need to make a case for why it would be better to opt out of opening a new position altogether.
Take a look at: Navigating Market Volatility with Money Flow Limits in XAUBOT Pro
Why Is It Necessary to Stop Trading After News in Forex?
It is not difficult to make a case for not wanting to trade in the aftermath of a news release. Given the lifetime of a news cycle, the immediate time after a news has been released is when things are most volatile, because nothing has been settled and there is a lot of speculation as to the actual impact of the news.
So it is easy to understand and to see why it would be a necessity and not an option to refrain from trading after a high impact has been released.
Although you might think with a well-thought-out strategy you might be able to benefit from this volatility, things are still too risky to engage in the market.
But there is another issue which is related to automated trading. If you employ automated trading through different means, how can you address the issue that arises right after the release of a high impact news?
Take a look at: Strategies for Post-High-Impact News Trading Pauses in XAUBOT Pro
XauBot Pro’s Stop Trading After High Impact News Parameter
So the issue that was mentioned in the last section has to do with automated trading operations and how it is possible to address the issue of not engaging in the market after the release of high impact news.
XauBot Pro is a fully intelligent and fully automated trading tool that is able to trade all currency pairs in the foreign exchange market. But it cannot be regarded as “intelligent” or even “automated” if you have to manually control the impact of the news on your assets in the market.
Fortunately, that is not the case with XauBot Pro.
XauBot Pro has a feature specifically developed for this purpose that is known as Stop Trading After High Impact News.
As the name suggests, this feature will provide you with an opportunity to instruct the expert advisor to refrain from trading after a high impact news has been released. This way you can rest assured that the expert advisor will automatically take care of this aspect of trading, as it does all the other aspects.
| XauBot Pro: addressing the issue after high impact news
Although XauBot Pro is a fully automated trading solution, it is still able to manage the uncertainty after high impact news There is a feature known as Stop Trading After High Impact News This feature will help your automated trading operations to be safe |
Take a look at: Implementing Stop Trading Before High-Impact News in XAUBOT Pro
Conclusion
The period following the release of a high impact news in the Forex market can be quite risky and challenging for traders to manage. That is why it is advisable to stay out and refrain from trading altogether during this period. XauBot Pro has a feature that can help you with this by automating this process completely.
