Forex News Scalping

 Forex News Scalping is a strategy based on movement of the price of currency pairs when economic news is released.

Open an Economic Calendar ad example Forex Factory Calendar.

Look for the more important economic news to be released.

Identifies the news that influential the forex market, determine the currency pairs that going to be

affected.

Time Frame 5 min but is not important.

10 minutes before that the news is released place two pending stop orders 15 pips above the current price and 15 pips below the current price.

Generally the forex market before the news is quiete.

But when the economic news is released the currency pairs can do large pip movements in eighter direction. This large mouvement of the price can be a good occasion for scalpers for generate profits.

But not forget that there large spreads.

Step 1

we have two pending order EUR/USD with profit target and stop loss of 15 pips.

Step 2

The news is released.

Step 3

A our order, open the position ( for example buy).

Step 4

Close opposite pending order.

Step 5

Waiting for the result of the trade.

When important news is released, the currency will move easily, producing large pip movements in either direction. Using this scalping strategy, traders will be able to get in and out of the trade in seconds at almost zero risk.

After studying for a while a particular currency pair and its reaction to the news, traders can predict direction of price spikes and the length of the move in pips to set entries and profit targets more accurately.

GBP / USD, EUR / USD, USD / JPY, USD/CAD, USD/CHF are the currency pairs suitable for this simple method of trading. There are the difference between London Session and New York Session,

NY Session is more aggressive.

In the picture, a simple example of how this technique applies.

This strategy is simple but for deeper understanding it is advisable to study how in the time, for example, a currency reacts to the release of certain economic news. Studying the personality of a currency in this case helps to be more conscious.

Forex News Scalping