How to trade Forex Economic News
By Abundance Trading Group1 min read
How to trade Forex economic news?
- Refer to our Forex news calendar
- In general, if the actual data is better than the expected data, the related currency pair will strengthen, vice versa
- Only trade news of high importance (3 bulls)
- Draw support & resistance lines on H1 charts (using open & close prices, not high & low) before the news.
- If price manages to breakout and close above the resistance line in the 5 minute chart AND
- The price movement and data agree (i.e. currency strengthen and data is bullish) AND
- Is not against the H1 technical trend (either with-trend or ranging is acceptable) AND
- There is sufficient space to the next support/resistance line, THEN
- Enter in the direction of the breakout, with a take profit at the next support/resistance
Example, NFP 6 March 2015
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Written by
Abundance Trading Group
A forex introducing broker founded in 2013. We partner with IC Markets, Axi, FP Markets, Blueberry Markets, and Tickmill and pass part of our referral commission back to traders as an instant discount on every trade — no monthly cashback to claim.