Scalping system #1 (Economic news releases)

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.

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

Edward. Very nice website

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

Thanks

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

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 Sam,

Do you mean the news trading strategy or the wolf wave trading?

Regards,
Edward

hello can you show this strategy in a chart or recommend access to a chart that illustrates the strategy.
many thanks,
Sam

We have this one:

Wolf.mq4

Regards
Thomas

How can I get a wolfe wave indicator for mt4? The current one Im using is boghus.

There is such indicator as volume in Forex. It tells traders how heavily a particular currency pair has been traded at any moment. In other words, how interested traders were is selling and buying this pair, how active they were.
Volume is observed closely together with the price and simply gauges the "worthiness" of any particular price move.

It is nothing like you've mentioned in your question though.
Well, wanted to give some links to read further on about the volume indicator, but surprisingly, there isn't much information written about it online. Here is a quick one to go:
http://forex-indicators.net/volume-indicators/volume

Regards,
Edward

Sorry for being off topic, but what does Volume mean? For example, if I select 0.10 as Volume (in Meta Trader) what does that mean? 10 cents? Thank you. (I know the question is stupid, but I am a beginner)

That's why Dean suggested to wait 15 minutes before placing any orders. By that time, hopefully, brokers ease on spreads.

Regards,
Edward

I think placing two orders in opposite sides with only 15 pips away is risky, many brokers widening their spreads during news release to 20 & 25 pips of the current price.

Faisal

Nice one!
Thanks, Dean. That's a smart way to trade news!
I'll publish it in news box above :)
Happy trading!

Regards,
Edward

I Ed -
I've come across a similar strategy which I'm still testing.

Basically it goes like this:
When the news breaks, wait for a 15 min candle to close.
Then place 2 orders - a buy 2 pips above the high of the closed 15 min candle and a sell 2 pips below the low. It can be a bit frustrating watching the price go berserk while you wait for the 15 min candle to close - but not as frustrating as getting into a trade too soon after the news and watching it jump the wrong way...
Waiting for the 15 min closed candle allows the mkt to settle a bit and make a definite move in 1 dir. Set a 20 pip Take prof, and 20 pip SL. Don't trade if the range is bigger than 70 pips, and obviously don't trade if the spreads are too big during this volatile period.

Once you start making a prof you can make use of a trailing SL.
If your order is triggered and the trade moves against you - let your SL kick you out and the watch to see if the other order is reached on the other side. In most cases if the initial trade goes against you and the other order fires - you will recover you losses with the 2nd trade.

Like I said - I'm still testing this strategy, but so far so good.
Good luck!
Keep up the good work!
Regards
Dean SA