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. The steps are:
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. Check out the steps below:
Initial price spike. News with the potential for a large market movement generally leads to a spike in prices when the news is released. An example is the pound sterling at the time of the Brexit announcement
Traders can wait 10-15 minutes for the reversal time to bring the price back to its original point
Entry. Enter when price breaks above or below pre-release levels
Set multiple target levels.
