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Scalping system #1 (Economic news releases)

 
Look for the important news to be released. Choose the most influential ones that are expected to shake the market well. Once got news (last can be found in any Forex economic calendar) find out which currency pair is going to be affected.

Now, 15 minutes before the data is released place buy/sell stop orders on both sides 15 pips away from the current price.


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Hi Edward,

I had a look at Dean's system and prefer it to the actual one posted.
However, after trading it for a while I've made some observations and am hoping that you (or Dean) could comment.

1. 20 pips seems reasonable as both SL and TP
2. Only trade news events that are of high importance
3. 15 min chart seems to be too long - I prefer 5 mins with the same entry rules

To conclude, I think news trading is fast paced and potentially very proftible, provided one can make the most of the volatility.

Thanks,
Clint

Hi Clint,

I support Dean and his 15 minute rule. Entering after 5 min will be way too risky most of the time if we are talking about news like Non Farm Payroll, and I'm not sure you'll be able to get the best fill and good spread 5 min after news release.

You can watch 5 min chart, but allow 15 minutes to pass. This will also give you an additional advantage: important news often set pace and direction for a new trend, which will last for many days. By watching price during those critical 15 minutes you can figure out a direction in which the market shifts to and then set your trades using that information to your advantage.

Regards,
Edward

Edward. Very nice website

Could you list the pairs that works better on specific markets. Tokyo, London, New York. This is for scalping.

Thanks

London/ New York sessions:

EUR/USD
USD/CHF
GBP/USD

Tokyo/Sydney sessions:

EUR/JPY
AUD/USD
USD/JPY
AUD/JPY

Sydney session:

AUD/USD
EUR/USD

Source: http://www.forexmarkethours.com/active_currency/04/
I agree with their list.

Regards,
Edward

trading news will blow your accountlol. Do not do that stay away from news, the only guys know what will happens before news are the head staff of central banks. mafia.

Hi i am very new to trading..indeed a total amateur..with regard to scalping and placing orders in both directions is there a guide as to when i should take profit..ie after £5 or less or more...any advice would be appreciated

steven UK

Steven, yes after £5 or less or more sounds like a great idea....

Hi Steven,

there are no such guidelines known to me.
While scalping, traders, as a rule, look to evaluate how many pips on average every entry on a certain currency pair in able to produce, and then they would pick the most certain low risk number as their profit target.

Best regards,
Edward