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