• Home
• Forex Trading Signals

• Forex
• Forex Trading

Retracement News Trading Insight - Double Fibonacci Method Plus Forex Trading Flaw

Download this Forex News Trading FREE Report by Henry Liu. Get this powerful Forex Swing Trading End of Day Trading Kit by Bill Poulos FREE. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade! Henry Liu on News Trading: I get asked this question a lot, and honestly I’ve to say there are 2 different answers on this:

1. News SPIKE Trading is pretty much dead, with brokers widening spread, delay execution,
and or just downright slip your entries, you’re lucky to break even after a high impact
news releases, let alone trying to make some profits…

2. News Trading however, on the other hand, is alive and well, and as a news trader and
fundamental analysis trader for over 5 years, I’ve to say that it’s still one of the best trading
methods in Forex that provides consistency and profits.

So the next question is, how to trade news properly while avoiding spike trading the news? The
answer is, Retracement Trade. Retracement Trading is to wait after the market has moved initially after the news, i.e. wait until the “spike” is over, and after the market retraces (or comes back) to a certain level you jump in since the market should make another attempt to retest the spike… And this usually take place if the release is strong enough to create momentum.

I think the toughest part of Retracement Trade is to calculate your entry, how long should you
wait? where should you enter? and where should you close the trade? Well, I just uploaded a video on my blog showing you what I do to calculate retracement on my live account everyday, and this video is from a actual trading session with my Mastermind Mentoring group on NFP Friday, April 2, 2010. No theories or hypothesis, but 100% facts backed by results.

Retracement News Trading Insight - Double Fibonacci Method

This video is just my way of saying THANK YOU! There is no obligation and you don’t even
need to opt-in. Just watch it if you got a few minutes to spare. I am planning a secret project to help new Forex traders, and I like to invite you to join this project once it’s available. So please help me out as I’ll be counting on you

Bill Poulos: While researching new ways to save time trading Forex (without sacrificing pips), I kind of stumbled upon 2 ‘discoveries’ that may surprise you. The first one has to do with a ‘flaw’ in how 90% or more of Forex traders think about trading these markets. It’s deceptively simple…

-yet it led me to develop a pretty unusual technique around ’scalping’ the ’sweet spots’ of the best Forex markets.

Watch this brand new video I just recorded that reveals these discoveries, along with my unusual ’scalping’ technique. If you really, really enjoy staring at your computer all day long day trading every nook & cranny of the markets, then you might not like this video, because it shows you how to spend LESS time trading and MORE time ‘having a life’.

Trading The Economic Reports

Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals. Download this Forex News Trading Report by henry Liu FREE. Get these Forex Scalping Cheatsheets FREE! Economic Reports are important for all markets but they are a way of life for the currency traders as well as the futures and options traders. Each individual market has its own set of reports which the traders pay special attention. But there are some economic reports that are prime catalysts for almost all markets especially the currency, bonds and the stock markets that stand at the center of the financial universe.

Gross Domestic Product, the Consumer and the Producer Price Index, the monthly Employment Reports, the FED’s Beige Book and the Institute for Supply Management (ISM) are some of the important economic reports that you should be aware of as a trader. You simply cannot ignore these reports. These economic reports are considered to be important trend setters in different markets.

As a trader, your world is highly dependent on the economic calendar. Economic calendar is the listing of dates when these important reports are released each month. Each month, these reports are released by different government agencies and the private sector. These reports are a major influence on how the financial markets move in general plus a source of cyclicality or the repetitiveness in the markets.

Not all reports are created equal. Some economic reports have more influence on the market than others. The most important reports that tend to move the markets a lot are the employment report, the Producer Price Index (PPI), the Consumer Price Index (CPI) and the FOMC Meeting Minutes.

The US Department of Labor’s NFP Employment Report is considered to be a major market moving report. It is released on the first Friday of each month at 8:30 AM EST. You should try to avoid trading at this time. However, there are many currency traders who now specialize in trading the NFP Report.

The release of employment figures is usually followed by frenzied trading that can last from a few minutes to the entire day depending on what the data shows and what the market was expecting.

The NFP Report becomes very important when the economy is shifting gears like the present when the US economy is coming out of recession. Market tends to develop an expectation about the employment figures and if the NFP report does not confirm with that expectation, it can make the market jittery for sometime before the importance of the release is digested by the market. Trader use the NFP report as one of the several important clues to predict the future of the interest rates.

Currency Strength Meter And Forex Torpedo

Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Download this Forex News Trading Report by Henry Liu FREE. Get this Forex Swing Trading End of Day Trading FOREX-4 PACK Training Kit FREE. This is what Henry Liu says: I get asked a lot about my Currency Strength Meter and what are some of the best ways of using it. So I sat down last Saturday and made a 26 minutes video covering the 7 ways that I use my meter, and I hope this video helps you to understand it better…

7 Tips for Currency Meter

If you haven’t downloaded my Strength Meter yet, all I have to say is that this nifty little tool is free and it’ll compare 19+ currency pairs instantly and show you what’s REALLY going on in the market…I honestly can’t trade without it! If you just use it after any high impact news release, it’ll help you pick out the best currency pair to trade and add at least 30 pips (on average) to your trade. I get rave reviews on this tool and as my way of saying thank you for downloading (or going to download) my Strength Meter, I made this video specially for you:

———————————————————
My Mastermind Mentoring Program Is Once Again Open For Registration:
———————————————————

The other reason for this video is to celebrate the one and probably only opening of my Mastermind Mentoring program for the year 2010. I would really appreciate if you help me to get the word out…There’s only 50 seats available, so if you are interested, please let me know asap and I’ll reserve you a spot! You’ll get more details about the Mentoring course at the bottom of my Currency Meter video!

The wait is OVER…The most eagerly anticipated Forex robot ever is finally live…The FTS guys are unleashing their deadly new EA on the market RIGHT NOW! Forex Torpedo is the first true multi-market condition robot that we have seen for over a year: whether the market is volatile or non-volatile, trending or non-trending… Forex Torpedo nails the lot! It really is time to kick the “single market condition” robots of 2009. Because, the advanced methods of artificial intelligence used in this incredible EA actually allows Forex Torpedo to see right into the future… making robots that are based upon past performance very much a thing of the past…Forex Torpedo is simply stunning, it took a starting balance of just $2,000 and transformed it into over $92,000 all in less than a year…

Forex Torpedo is the only Forex robot on the market that gives the little guy a real opportunity to trade and make the same kind of profits as the biggest traders on Wall Street. However, this flagship EA is only available on a strictly limited offer basis. Luckily, I am one of the few guys who have been told about this offer, which means that I am able to present you with this one-time window of opportunity. Put simply, if these guys sold too many copies of this powerful robot, then it would give brokers an opportunity to counter its incredible effectiveness. This is why they are only able to put a measly 500 copies into the market.

All this means that only a handful of extremely lucky traders are going to get their hands on Forex Torpedo and the insane profits that are PROVEN to come with it… I really can’t stress this enough, once this flagship robot is gone, it’s gone. There really is no time to waste. Get to the launch page now and secure your copy of Forex Torpedo before other traders beat you to it!

Trading NFP Release With Henry Liu

Learn Fibonacci Retracement and download this FREE Fibonacci Strike Method that pulls 300-500 pips per trade. Get the shocking Forex Robot World Cup 40 page PDF Insider Report FREE that reveals all about the automated trading systems. Read the story of Richard Samuels, a post office mailman with a head injury and how he made a fortune with these Neutrino Forex Signals!

NEWS TRADING (By Henry Liu)
1. Friday February 5, 2010 (7:00am NY Time) CA
Employment Changes Forecast 15.2K Previous -2.6K
Unemployment Rate Forecast 8.5% Previous 8.5%
If the employment number is higher, we would SELL USD/CAD, and if the employment number is lower, we would BUY USD/CAD. This news indicator measures the numbers of new jobs created during the previous month, however in this case, we will see how many jobs were actually lost, and less negative numbers mean better economy. Our surprise factor will be at least 30K. Historically, it has moved the market by at least 50 pips if the surprise factor is hit by at least 80% of the time.

2. Friday February 5, 2010 (8:30am NY Time) US
NonFarm Payroll Forecast 10K Previous -85K
Unemployment Rate Forecast 10% Previous 10%
We’ll be trading the NFP release today, which is expected at +10K with a previous release of -85K; if you remember what happened last NFP, you’d know that the last release disappointed the market and kept USD under pressure for the better part of the months as after a revision of November NFP to a positive number, the December release brought back concerns over the rate of economic recovery. At the time of writing this analysis, market is in full risk aversion mode.

With the forecast on NFP turning positive for the first time, we could see a bullish sentiment on the USD as a result of market psychology. However, there are several things that we need to consider for tomorrow’s NFP release. First of all, there is a possible increase in the total jobs count as the Obama administration hired over 550K temporary workers for the national census. Should this number make in the January 2010
count, expect to see a blow out positive number in the NFP release and a possible 1.0% decrease in the unemployment rate. Secondly, the BLS or Bureau of Labor Statistics will release its annual benchmark revision for the payrolls. Expect to see a significant downward revision on the first quarter of 2009, which may offset the NFP release numbers all together if the revision is significant.

Therefore, let’s talk about how to trade this release: We’ll wait for the numbers to come out, but will not take any trade YET, even if we get our tradable figures (-60K or 80K). We’ll wait for a possible revision to the previous release number, which is -85K, as the market usually overreacts with the Revision and chances favor for this trade to work out if we do not get conflicting releases between the revision and the actual release; then we will wait for the Benchmark Revision… at this point, still stay out of the market.
Then the next step is to wait for the Unemployment Rate, which is at 10.0%. If the Unemployment Rate were to surprise higher, we’ll have to really make an executive decision at the time of the release and see what is the primary focus of traders. As long as we don’t surprise the 10.5%, I think the market will probably pay more attention to the NFP release. Of course if the census workers were to be included in this release, then expect to have a much lower than expected unemployment rate…

After all of the numbers have been released. Wait for the market to push… then be patient and wait for a decent retracement before getting in. Look for recent support/resistance areas for entry as a high impact news with various components will usually be extremely volatile, and those who are patient will always get a chance to enter at much better entry.

DEFINITION
“Measures the change in number of employed people during the previous month, excluding the farming industry. A rising trend has a positive effect on the nation’s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.”

Forex News Trading

Learn this 10 minute a day Swing Trading Strategy. Get your Forex Scalping Cheatsheets. Forex News Trading is a highly profitable way of making pips if you know how to trade the news correctly. You make money from the volatility in the forex market. When some news of fundamental importance is released to the market, the market reacts in a nervous and jittery manner. Many traders look for this type of volatility in the market to make a killing.

But many traders get themselves killed by the market instead. So only trade news if you are experienced and know how to do it. The markets are highly volatile at the time of news release. Most traders prefer to stay out of the market at those times. You never know how the market is going to react to a surprise news so many professional traders will advise you to keep yourself away from the market at those times. By closing all your open trades before the release of the news you make yourself safe.

Then why do some traders try to jump into the market at such times. The reason is if you know how to trade the news correctly, you can sometimes make hundreds of pips in minutes. This type of windfall gains lure this mavericks into trading the news when everyone wants to hold the breadth.

An important question that comes to your mind is what type of news makes the market nervous. Anything that is unexpected is going to make the markets nervous. Suppose the market is expecting a certain housing sales figures but when the housing sales figures are released, they are unexpected! This will make the market nervous. The prices will suddenly start shooting up and down without any reason. It takes sometime for the market to understand the importance of the news and settle down. This time may be a few minutes to a few hours.

What you need to do is take a look at the monthly economic news release calender and mark the times when news of fundamental nature like the Non Farmpayroll (NFP) figures, GDP figures, Consumer Confidence figures, sudden interest rate changes by the Central Banks, CPI figures and so on are released. Just Google Economic News Release and you will find this information for US, Canada, EU etc.

Just observe how much volatile the market becomes at these times by trading on your demo account. The liquidity in the market thins out, the spreads widen and it becomes really difficult not to get your stops tripped. If you are risk averse then you need to stay away from the market at such times.

For those risk takers who want to make tons of pips in such times, news trading is a great opportunity. Within a matter of few minutes you can make up to a hundred pips easily if you are trading at the right time! The most market moving report is the NFP report!