08 Mar 2008 12:28:38 | Cynthia Macy
Forex traders know the importance of economic news releases and
how that effects the exchange rate. A positive or negative news
announcement in the US morning session can send the EUR/USD rate
up or down extremely fast! One way to capture these large moves
is to use ENTRY STOP ORDERS.
Entry stop orders are an excellent way to get into a trade long
or short AUTOMATICALLY. Often if the market is moving extremely
fast (due to an economic news release or geopolitical event) and
you want to get into a trade, it is extremely difficult to get
the price you click (live market order) because the exchange
rate is moving up or down so fast. It is like trying to jump on
a train that is moving at full speed.
An entry stop buy or sell order places an order with the dealing
desk of your Forex clearing house to execute your order when the
exchange rate touches the level you set the order at. The CMS VT
platform guarantees that these types of orders will be filled.
The following link outlines the economic news releases for the
week. I find it very helpful because it rates every release in
terms of importance on a grading scale of A-D. A denotes very
important down to D with little significance to the markets. It
even lists what the market expects to happen with the
briefing.com forecast.
Click Here for the Yahoo Finance Economic Calendar:
http://biz.yahoo.com/c/e.html
1. Check the economic Calendar
2. Set your entry stop buy or sell at a key level 15-30 minutes
before the announcement is released. Set your stop and limit on
your order by right clicking the order when it appears on your
VT platform.
3. You can also "straddle" the price movement by placing a long
and short entry stop or sell order (and subsequent stops) if you
aren't sure which direction the news release will send the
price.
The above report was taken from the Euro Fractal Trading system,
written by Erol Bortucene of the Day Trade Forex Team.
This unique approach to day trading the EUR/USD involves using
financial Fractals and no other technical indicators, as
outlined in the Euro Fractal Trading System. The Euro Fractal
Trading System also teaches how to use key price levels to take
entry and exit positions, thus taking the guesswork out of
trading.
About Author :
Cynthia Macy has been trading various markets for over 12 years
but now concentrates on the forex market and is the co-author of
3 forex training ebooks.
