00:00Now let's get into news trading. News trading is my favorite thing to do. I don't put orders on before
00:08the news hits. I'm not into bracket trading news. You can do that. That's just I feel I don't have
00:15to do that.
00:17So if I want to do some manual discretionary trading throughout the day, what I typically do, my first order
00:23of business is, as you can go to, you know, there's many websites out there, but let's go with a
00:29tried and true. Let's go ahead and take a look at forexfactory.com.
00:34So looking at forexfactory.com, clicking on calendar, you can also click on this time window to adjust your time
00:44zone and whether you're on daylight savings time or not, so that your time that you read here on the
00:51chart synchronizes with wherever you are in the world local time.
00:55You know, I always pay attention on a day-to-day basis. Where are my orange folder and red folder
01:03items? The news reports that are most likely to cause some energy to come into the market and cause a
01:11reaction.
01:12And the ones that I really like, I love central banker news, you know, interest rate news, interest rate meeting
01:20news, GDP numbers, inflation numbers, employment numbers like non-farm payroll, Canada's employment news, Britain's employment news, Germany, anywhere where
01:34there's prominent news items hitting the market.
01:40Those are the times I'm going to go be ready. And it's real simple. Like for instance, on Wednesday, May
01:479th, there was a PPI news that was going to hit at 7.30 central time, Chicago time.
01:54We had oil inventories at 9.30. Great news item. If you trade oil on your, you know, MT4 platform
02:04through your broker.
02:05If you're trading a New Zealand dollar related pair, there was major news, official cash rate and their monetary policy
02:14statement at four in the afternoon, U.S. central time and so on.
02:19So what I do is I know going into the next trading day, I already have in my mind, okay,
02:27I'm going to pay attention to U.S., you know, the euro, the British pound related pairs at this time.
02:35And at this time, I'm going to watch some pairs tied to the New Zealand dollar.
02:39Here we had China, CPI and PPI news, you know, that will get a reaction out of the Japanese yen,
02:47the Australian dollar, the New Zealand dollar at times.
02:50So it's always these orange folder or red folder items.
02:55So I literally week to week can go pick times where I know I want to be paying attention to
03:00the market when the market isn't reacting to key support and resistance levels.
03:06I don't want to sit there and watch the charts for eight hours a day.
03:10I'm going to pick and choose.
03:11And a lot of times, these key news events drive price into key support and resistance levels.
03:20It's, you know, it's just how it works.
03:21Energy comes into the market, moves price to an area where there's going to be a reaction.
03:27Now, what I'm looking to do on a lower time frame chart with a news item, say a news item
03:34hits, let's say there's British pound news.
03:36I'm on the five minute chart that day.
03:39British pound had signaled a long setup.
03:42It activated.
03:43So there's been some positive upside momentum in the British pound.
03:48Then news hits and we get a little bit of a whipsaw down and then we get some lift.
03:53So we're getting into a news environment, a news reaction.
03:58So how I like to trade news items is when I get a bar close where I can see there's
04:05been a prominent reversal or some energy coming into the market, I'm not just going to jump in at the
04:12bar close and go long and say, okay, let's see what happens.
04:16I'm going to follow that energy of price.
04:19And when the bar closes, I'll go and I'll set a buy stop.
04:23You know, I'm on a five minute chart.
04:25I'll put a buy stop about 10 to 12 pips above that bar close.
04:31So I'll set an order up here like a buy stop.
04:34I'll get ready to drag down the order and lay it right about 10 to 12 pips.
04:40Doesn't have to be super precise.
04:42Just, you know, I can look over the side and see what about 10 to 12 pips are.
04:45I'll put a buy stop in.
04:47If price can maintain that, maintain that momentum and come up and tag me and fill me, then I'm in
04:54the trade.
04:55I'm now long in the market.
04:57I'm playing the long side.
05:00Out of a reaction to news.
05:04Now, I'm not jumping in 10 seconds after news.
05:07I'm I'm waiting till I get a good strong bar.
05:11I had a reversal bar on a five minute.
05:13Now I have a power bar, a bar that, you know, closes near the high.
05:18And I'm already in an environment of upside momentum.
05:24If you have access and you also have the FX push indicator, I can see momentum is starting to build.
05:31So there's there's stronger upside momentum and they're starting to be dissipating downside momentum.
05:38I put price 10 to 12 pips away from a bar close and I see if the market can carry
05:44that news based momentum into my order.
05:48I get filled as soon as I get filled.
05:52Whatever my typical risk is that I would use on a five minute chart.
05:56I would never put a stop any less than about 15 pips on a news related trade.
06:03What I like to do is typically trade.
06:06The most recent price pivot, especially if that was a pivot made by news.
06:11Now, if this is 100 pips, I'm not going to put 100 pips stop.
06:15You know, 20 to 30 pips is about my maximum stop that I would ever use on a five minute
06:21chart trading a news item.
06:23So I might just say, OK, if I get triggered in the trade, I'm willing to put my stop somewhere
06:29in the body of that power bar or at the bottom.
06:32But I'm not going to exceed 30 pips.
06:35It's just there's it's not needed.
06:37There needs to be instantaneous follow to it.
06:40And when I do get followed through, I'm going to bleed out that risk.
06:44So let's go ahead and color this red.
06:47This is my stop.
06:50I've been buy stopped into the market.
06:53The market went up, hit a buy stop that I had resting.
06:56I'm filled at that price.
06:58I'm long.
06:59Market carries through into bar, starts running away from my position.
07:05Now, that's my risk initially.
07:07So the minimum I should be going for is about two to one.
07:13I always like to target a minimum two to one reward to risk.
07:16So we'll just ballpark drawing about what looks like two to one to me.
07:22And we'll go ahead and color that.
07:24So now I know where I where the market needs to go to where I would think about taking off
07:30a portion of the trade or just closing out the trade and calling it good.
07:34Especially if it starts to grind and take a while to get there.
07:38When it gets there, I'm going to take a portion of that trade off.
07:40If it just keeps driving right on through, I'm sitting on my hands.
07:45You know, I'm letting price tell me what I need to do.
07:49Soon as price gets about to my one to one point.
07:53Right. So let's say I had just arbitrarily say I ended up having 28 pips of risk on and the
08:00market gets about 28, 29, 30 pips in the money.
08:03I'm moving my stop to break even.
08:05There's no need to have risk on anymore if I'm at my one to one point.
08:09So now I'm sitting, waiting, waiting.
08:11I had one prominent pullback lift, prominent pullback with a pivot lift.
08:17Now it's lifting.
08:18It breaks above this highest price achieved since the news release.
08:23It's pressing higher.
08:25I'm moving my stop up below the most recent pivot.
08:27I've locked in some profit.
08:30Pushes, misses my two to one.
08:32Goes sideways for a bit.
08:33Gets a second wind of some upside momentum.
08:37Comes up, tags my two to one area.
08:40So as soon as it's up near the two to one area, if I'm not closing out my entire trade,
08:46I'm going to put my stop anywhere near these most recent pivots.
08:52Price goes up.
08:53I take some of my trade off.
08:55Why?
08:56Well, it didn't just power up through.
08:58You know, we had a big pulse move and we grinded higher, but we don't have energy maintaining in the
09:06move.
09:06Yes, the market's moving upwards in a, you know, in a stair-stepping manner, but the authority of the initial
09:14move is dying off.
09:15And I can see my trade intensity has really died out and I'm even getting some challenges as I'm pressing
09:22higher.
09:23So sellers are willing to come in and slap that upside pushes and they're slapping price as it's going higher.
09:32Sometimes that slap down is just those that got into the move are selling to cover and unwinding chunks of
09:39their trade.
09:41Now, if I had my stop in this area, the market came down very near, would have gotten very close
09:47to stopping my outholds, starts lifting higher again.
09:53Again, I know where my two to one point is.
09:57It presses beyond the two to one.
10:00Any stop I had there, I would be moving it higher.
10:04First here, as price comes up and starts pressing above the previous highs, I'm moving my stop higher to the
10:11next most recent pivot as I stair-step higher.
10:15But when I get a press, a slap down rejection and a press, any time price goes up and challenges
10:23a prior high and can't press through and comes down, I'm always of the mentality that I'm looking to extract
10:29and thin down my remaining position.
10:33So I would be closing out or taking off any substantial portion of my position still on, maybe leaving about
10:41a third of the trade on max.
10:43Eventually, it comes down and just stops me out and I made money on the trade.
10:49Now, there's other times when you could get a news release and then you just get a signal to trigger.
10:55That's fine.
10:55You can work those.
10:57Just, I don't like to take signals in the first five minutes or ten minutes out of a news release.
11:04I like to see if the move will maintain momentum.
11:07And if it does, if the move does continue, you usually have at least one additional pickup point where you'll
11:14get a kickback against the move and then it will roll over and continue and you can usually get another
11:19signaled entry.
11:23So, I like to take long set-ups when there's upside momentum showing on the pulse indicator.
11:31I'll take short set-ups when there's downside momentum.
11:35So I'm not going to work a short set-up when I'm still detecting upside momentum.
11:39I'll wait for a regular signal, a pulse trade signal, or I'll wait until we're already in some downside momentum
11:48and see if that move can continue or give me a secondary entry.
11:56So, trading news is, the good thing about trading news, it's very efficient.
12:02You can go look at the calendar, pick your times to watch the market.
12:07If you're watching two pairs, four pairs, six pairs, especially ones that are most correlated to what news is hitting,
12:16you're usually, if the news causes a reaction, sometimes news hits.
12:20Sometimes news is within expectations and there's not much of a reaction.
12:25And then there's times when the news surprises the market and you might get a pulse like this and three
12:31hours later, it's still going.
12:33So, you just have to take what the market gives you.
12:38But the more energy that's in the market, the more I like to be active trading.
12:42When the market is doing this and going sideways and there's not a lot of energy, I'm not excited to
12:50be trading setups.
12:51I trade that market when I know there's going to be energy.
12:56Price reactions to support and resistance levels, price reactions to news releases.
13:02So, those, in my opinion, are the two best times to go in and target trades with the system and
13:09with the overall trading tools that are part of the STE package, the Strike Trader Elite trading system.
13:18Just wanted to cover news.
13:20That's how I like to cover news.
13:22We'll add more content going forward.
13:24We'll show you more examples.
13:25At least now we've given you the basics of how the system works after you've loaded it to your charts
13:31and then when we like to go out and target trade setups as we work trades in the FX spot
13:39markets.
13:40There you have it.
13:41If you have any questions, just contact us.
13:43And that is trading news.
