Topic Cover | Important, Forex News, Tape Bombs,
As the market began to crash in 2008 everything began to change. Through 2006-2008 we had some of the best most consistent price action in the forex market in and around financial news.
Not only did the brokers have no idea how to stop spike trading auto click software, but the overall reaction to market news was very consistent. More often than not it would spike, retrace 6.18% of the move which would give a great chance for an entry, and then continue off in the original direction of the spike. Trading forex news was extremely straight forward and quite frankly many made a small fortune. During this time I was using the original piece of spike trading software.
Brokers were completely caught off guard and really had no way to stop it. To fight back they began much more aggressively using the dirty tricks you see as common place today today. Until that time massive spreads, re quotes, and huge slippage was more of a rarity than a market standard. Now a days however those things are the market standard, with honest forex brokers being the rarity. We have moved from a much more “simpler” trading environment to a dynamic one that is always changing to say the least. How can you stay on top of forex news important to you?
First of all not all financial news is important, and just because ForexFactory labels it a “high impact” news release doesn’t mean it will necessarily move the marketplace. Times are changing and the impact financial news has on markets will change even faster. What’s important today will not necessarily be important 6 months from now. How can you keep an eye on a market changing so fast? One way is to keep up to date on the response you should expect with each release.
As we mentioned an important piece of financial news will not necessarily move the market, and therefore it is critical we understand how a specific piece of news will move the market, and what type of deviation does it take from the expected number to do it. We can do this by using tools such as ForexPeaceArmy News Calendar which is able to show you actual charts of all past releases. This is critical information as you can see how the market responds to the news.
Additionally the current days forex news is covered in the daily market commentary. What is nice about the commentary is how all the information is already boiled down for you. Hours of research go into each daily market review saving our 12,000+ monthly readers massive amounts of time they can spend elsewhere. Remember the second part of this sections heading….”tape bombs”. What is a tape bomb? A tape bomb is an unexpected major news release that was not scheduled.
Often comments from influential financial leaders, or comments from a central bank can makes massive spikes in the market leaving traders more often than not frustrated. You will never be able to avoid every unexpected news release. With that being said you can however take certain steps to be as prepared each trading day as possible.
How so? Knowing what is happening in the financial world can keep you abreast of the potential for a tape bomb. More often than not meetings between financial heads cannot be found on news calendars. Not knowing when these meetings are to take place can be devastating as you are left not knowing the cause of the massive market move or major volatility increase. Because of this I always start my trading day by first reading through Chad’s commentary, and as a general rule of thumb the most important information I need to know is covered saving me a huge amount of time daily.
As the market began to crash in 2008 everything began to change. Through 2006-2008 we had some of the best most consistent price action in the forex market in and around financial news.
Not only did the brokers have no idea how to stop spike trading auto click software, but the overall reaction to market news was very consistent. More often than not it would spike, retrace 6.18% of the move which would give a great chance for an entry, and then continue off in the original direction of the spike. Trading forex news was extremely straight forward and quite frankly many made a small fortune. During this time I was using the original piece of spike trading software.
Brokers were completely caught off guard and really had no way to stop it. To fight back they began much more aggressively using the dirty tricks you see as common place today today. Until that time massive spreads, re quotes, and huge slippage was more of a rarity than a market standard. Now a days however those things are the market standard, with honest forex brokers being the rarity. We have moved from a much more “simpler” trading environment to a dynamic one that is always changing to say the least. How can you stay on top of forex news important to you?
First of all not all financial news is important, and just because ForexFactory labels it a “high impact” news release doesn’t mean it will necessarily move the marketplace. Times are changing and the impact financial news has on markets will change even faster. What’s important today will not necessarily be important 6 months from now. How can you keep an eye on a market changing so fast? One way is to keep up to date on the response you should expect with each release.
As we mentioned an important piece of financial news will not necessarily move the market, and therefore it is critical we understand how a specific piece of news will move the market, and what type of deviation does it take from the expected number to do it. We can do this by using tools such as ForexPeaceArmy News Calendar which is able to show you actual charts of all past releases. This is critical information as you can see how the market responds to the news.
Additionally the current days forex news is covered in the daily market commentary. What is nice about the commentary is how all the information is already boiled down for you. Hours of research go into each daily market review saving our 12,000+ monthly readers massive amounts of time they can spend elsewhere. Remember the second part of this sections heading….”tape bombs”. What is a tape bomb? A tape bomb is an unexpected major news release that was not scheduled.
Often comments from influential financial leaders, or comments from a central bank can makes massive spikes in the market leaving traders more often than not frustrated. You will never be able to avoid every unexpected news release. With that being said you can however take certain steps to be as prepared each trading day as possible.
How so? Knowing what is happening in the financial world can keep you abreast of the potential for a tape bomb. More often than not meetings between financial heads cannot be found on news calendars. Not knowing when these meetings are to take place can be devastating as you are left not knowing the cause of the massive market move or major volatility increase. Because of this I always start my trading day by first reading through Chad’s commentary, and as a general rule of thumb the most important information I need to know is covered saving me a huge amount of time daily.
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