The rise and fall of currency values after the release of political news in Brasil is a sure thing. But not all traders can read this news well and then use it for trading purposes. Wrong reading and taking a position, might even make you lose big. That is why you need to make sure you get the latest information about the market at http://www.forextradingbrasil.com/. But what kind of forex news releases is the right time to trade? Many traders like to trade and make decisions when the scheduled announcements on the economic calendar occur. Some prefer to enter the market when conditions are not very volatile, namely before the release of the announcement. In summary, the three approaches are:
1. Trade before the news is released. For traders who wish to trade in calm conditions, you can follow these steps. Adjust the time chart frame, analyze the 48th time before the news release. Traders can try to buy at support and short at resistance, placing stops below support and above resistance. Targets for long trades can be set at resistance and targets for short positions can be placed at support.
2. Trade when the news is released. Select the relevant currency pair. Make sure the headlines match the currency you want to trade. Switch to the 5-minute chart right before the news release. Observe the close of the first 5-minute candlestick. When the price approaches the spike high or low spike, fade the movement by trading in the opposite direction. Place the stop at 15 pips above the high for short trades or 15 pips below the low for long trades. Targets can be set at two or three times the stopping distance.
3. Trading after the news is released. Traders who choose to trade after the news is released can choose from a variety of strategies. One of them is a trend following strategy. Determine the trend direction on the daily chart. Draw support and resistance lines. Choose a forex time frame between 1-4 hours. Buy near support in an uptrend and sell near resistance during a downtrend. Another trading strategy that can also be used after the release of forex news is the news reversal strategy.