86# Major News Trading System

 In Forex, as in other financial markets, there are always numerous news and events all the time. Besides, as Forex markets are open 24 hours a day, more news come out

from all the countries around the globe. Some of these news and events cause more volatility than others. When an important economic event is released, we

expect great volatility, and with that we expect a good opportunity to make a good profit.

The news/events that we are going to monitor more closely for this strategy are the ones that have more implicit volatility.



The Rules:

The news and events that cause major volatility in the Forex markets are the payrolls and the FED interest rate decision announcement. These are the only events from which you can expect huge volatility almost all the time. You will need to enter a buy or short sell order one hour before these major events because Forex brokers do not assure you that the orders can be filled. If you try to insert an order only a few minutes before the news come out, you may not be able to enter it at the price you want. In this strategy, you will place 2 different orders. The buy entry order will be placed 10 pips above the high of the day and the short sell order will be entered 10 pips below the low of the day. One thing that has a major importance for this strategy is the stop loss order. You must place a stop loss order of 50 pips in each one of the orders. As there is abnormal activity, if the currency pair doesn’t go the way you want, this is the highest risk you are taking, while your profits can

often be more than 100 pips. This is a terrific risk-reward. After entering the trade, you will use the Awesome indicator to tell you when to exit the trade. You will exit the trade if your stop loss is reached, or if the Awesome indicator gives you an exit signal.

As this strategy is basically based on high volatility periods, if after 2 minutes of the news are released you don’t see any abnormal volatility, cancel the entry orders at once. Do

not waste time. These news and events cause such movement that sometimes prices start to move rapidly some seconds or minutes before the due time for the event


For this strategy, you should use 15 minutes charts.


Trade #1 – Long Position:


Entry: Buy EUR/USD at 1.2825

Stop Loss: 1.2775

Exit: 1.2887

Profit: 62 pips

According to this strategy, we will place two different

orders. The buy order will be placed 10 pips above the high

of the day – at 1.2825 –, and the short sell order will be

entered 10 pips below the low of the day. We will also enter

a stop loss order of 50 pips on both orders. If your broker

doesn’t allow you to place an order during news releases,

you must insert your order 30 to 60 minutes before the

news release.


After entering on one trade, in this case the long position,

you will automatically remove the other order that was not


You must follow the Awesome indicator closely because it

will tell you the best time to exit the trade. You will close

your position at 1.2887, when the Awesome indicator is

giving a downtick (it turned red).

In less than 2 hours, you just booked a profit of 62 pips…

This is what abnormal activity is all about.

Trade #2 – Long Position:


Entry: Buy GBP/USD at 1.8940

Stop Loss: 1.8890

Exit: 1.9088

Profit: 148 pips

In order to follow this strategy, you need to place two

different entry orders – one for long and another one for

short. The buy order is going to be placed 10 pips above

the high of the day, at 1.8940. The short sell order will be

entered 10 pips below the low of the day. Depending on the

broker you are using, these orders must be entered up to 1

hour before the news released. Do not forget to put a stop

loss order of 50 pips, again, for the two orders.

If your order is not filled 2 minutes after the news release,

remove your orders immediately. Sometimes, the

movement that we were expecting doesn’t happen. So, it is

better to look for another trade elsewhere.

Once you enter in one of the two orders, remove the other


After entering on the long side, you should monitor the

Awesome indicator which will tell you when to exit the

trade. When the indicator turns red – or gives a downtick –,

it is time to exit the trade. In this particular case, you

should sell at 1.9088, with 148 pips profit.




Trade #3 – Long Position:


Entry: Buy GBP/USD at 1.8436

Stop Loss: 1.8386

Exit: 1.8515

Profit: 79 pips

The horizontal line in this GBP/USD 15 minutes chart

represents the price at which we are going to place our buy

order (10 pips above the high of the day). We will also

enter a short sell order 10 pips below the low of the day.

Do not forget to place a 50 pips stop loss for both entry

orders. You may think this stop is too large but in extreme

volatility days, you should use this kind of stop. You can

adapt a different stop loss if you prefer to.

After entering the trade, you should pay attention to the

Awesome indicator. If you check the chart, you see that

this indicator turns red at 1.8515. This is where you exit

your position, with 79 pips profit.



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