How To Trade Red Economic News Events

SCALPING A RED NEWS EVENT

If I’m scalping to a red news event, I’ll trade in the direction of the Daily trend, using the scalping 3 chart set up. Using a trade manager is imperative, but the take profit and stop settings need to be wide, like if you were swing trading, because a news event has the potential to move a pair anywhere from 40 pips to hundreds of pips.

For news trading, you have to use the Forex Factory Calendar to choose the red economic news events you want to trade. Here’s a video I made a few years ago that teaches you how to set up your timezone and filter to see only the red news events for the currencies you want to news trade:

== > https://youtu.be/hk481mE_Oy0

Here’s a screenshot of how I have my own FF Calendar red news event set up:

==> https://www.screencast.com/t/SnZaF55g

I check the FF Calendar every Sunday and plan my news trading for the coming week. I plan my week around these trading events. I love news trading because I can be in and out relatively quickly with the greatest amount of pips.

You can get in the news trade either 5 min before the event or 5 min after the event, your choice.

However, if you look at a one hour chart, you can see clearly going back several hours, even up to 24 hours, what the market sentiment is… and if you position yourself early in the game, you’ll be in early to gain the most pips. You can aim for a fixed target of 100 pips and set your stop at 100 pips. Normally I like a better than 1:1 risk to reward ratio but for news trading, your stop must be wider to accommodate any whipsaw on the initial spike in the first 5 minutes of the news announcement.

Use a trade manager with wide stop and take profit settings, according to the support and resistance levels in a Daily chart and trail with about 15 pips.

NOTE: The FF Calendar is mainly for economic news events and doesn’t usually feature political news events. You need to monitor those too because they have the potential to swing the market with even more volatility. I normally avoid being in any trade ahead of time if I can help it if I’m aware of a political news event. I personally like bbc.com/news/world.

Some brokers will send out emails warning about upcoming high volatility news events… you need to pay attention and protect your account by exiting trades before the news event, no matter what kind of forex trader you are.

All of my advanced color coded trading systems include a trade manager expert adviser… I highly recommend that you use a trade manager to trade the red economic news events, it will react much faster than you can and manage your trade better than you can, especially if the price spikes and then reverts quickly… most traders just freeze and never grab the profits… your trade manager has no such problems!

To give you another edge in your news trading, you can also set certain fixed take profit levels, according to the major and minor key levels for each currency pair. Of course this still mandates using a trade manager expert adviser, you can’t and shouldn’t attempt to trade the news without one.

My Color Ribbon Surfing System includes an indicator that automatically draws the major and minor key levels right on your chart… the minor key levels are spaced 25 pips apart and the major key levels are spaced 100 pips apart. Setting your take profit at 100 pips for major red economic news events like NFP can give you a possible gain of 100 pips… if the price action falls short, at least your trade manager will grab what it can.

If you want to check out my Color Ribbon Surfing System, click the image below, and if you purchase the basic system, you’ll be offered to purchase the advanced system for a small extra cost… the advanced system includes my best trading tools, including my trade manager expert adviser which has 7 different trail types which you can use for scalping, day trading, swing trading, or news trading…

CLICK THE IMAGE BELOW TO LEARN MORE:

Inspired by Cynthia’s love of the ocean and surfing!

Dedicated to your trading success,

Cynthia

“Trading from the beaches of Mexico! You can too!”

PS. Visit me on Facebook and give me a great big ‘Like’!

* Risk Disclaimer: Trading is risky and is not suitable for everyone. Only risk capital should be used. You are responsible for your results and agree to hold everyone else harmless if you lose.

About Cynthia Macy

Cynthia started trading stock options in the late 90's and discovered the forex market in 2002. She created her first forex trading system in 2003 and has been a professional forex trader and system developer since then. Currently, she has four MT4 color-coded trading systems. An avid ocean lover, she enjoys all ocean-related activities, including body surfing, snorkeling, scuba diving, boating and fishing. The Color Ribbon Surfing System was created out of her love for the waves of the ocean.
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Hi Cynthia:

I have been doing really well with the currency strength meter software i purchased from you, I have tried the strength meter from another software but did not care for it...I use the 4hr charts and I make money consistently....you have really changed my LIFE...thank you so much!!

Steven Scales

Ok started using your newest system tonight and I am loving it. It really does help so much with recognizing divergence. At first I was not sure if I needed the Advanced version for my Binary trades, but the more I use the Advanced version, the more i see the need and benefit for it. I will be using it on the 5 min and 1 hour Binary Options. My first night was very profitable. I will also fund my FX Choice acct again, as this makes trading so easy, Thanks again Cynthia, looking forward to the next one. Update: Cynthia in addition to previous comments, I believe this is the most profitable and easy to use system that you have come up with so far. I am so excited to be using this !!

John Culbreth

Cynthia has outdone herself with this extremely helpful trading system, the Neon Breakout--she has used her natural trading talents, extensive knowledge and vast experience to create something that does all the "heavy lifting" and uses indicators (wonderfully explained in her videos) and arrows to keep you on track--nothing is absolute in currency trading, but this program gives you a wonderful chance to be among the 5% that are successful traders.............

(I am in no way affiliated with Cynthia and am simply offering my honest opinion---)

Ken McInnes

Miami, FL

Hi Cynthia,

Just thought I'd let you know that I love your Currency Strength Meter. It really helps me decide which trades to take, as I can now pair a strong currency with a weaker one. And it's so simple to use. You can see at a glance which currencies are strong and which are weak. I also like the enhancements to the PRO template, especially the new trade buttons, which now allow pending orders.

Have a great weekend.

Meredith Isbell

Australia

Hi Cynthia,

I use your Breakout Simple System and LOVE LOVE it!! Thank you for sharing your wisdom for such a reasonable price. It has been life changing for me.

Pamela L.

First of all let me say WOW! Just diving into the Neon Breakout system and trying to absorb all of the amazing amount of information. Looks like a great system, can't wait to start using it on my demo acct. Definitely a lot more tools to use than previous systems. Thanks for creating new and improved systems, but even more than that, thank you so much for your continuing support and interactions with your customers. I've never seen that from any one else in Forex. Like everyone else, I've spent mucho dollars on other systems and training that left you with little or no support and, in the end, a mostly worthless system. I know we've all done that. So again, thank you for being there for us long term. It means a lot cause Forex trading ain't all that easy without your help! Love the excellent training videos.

Marc

Washington State

I've been wanting to learn more about how to trade retracements and see divergence and Cynthia's Advanced Neon Breakout has the extra divergence indicator that makes seeing momentum and trend change coming. Her training videos in the PDF are excellent and I'm learning all about trading retracements and re-entries. Her new system makes it so easy, I'm really enjoying it!

Rory Calhoun

Mississauga, Canada

Cynthia, you and your staff have really developed a great package in the Advanced Neon Breakout. I love it! Just so you know where I came from, I "was" an e-mini trader for about four years, and lost my shirt+. So doing the longer Forex day trade, M30, H1 or H4 really is a nice break for me. I have been trying to learn Forex for the past two and a half years. Love your color MA's and the divergence indicators. They are spot on. My goal tomorrow is to trade just two currencies, and I can see where you can get 100+ pips using the new system. Many thanks for all your efforts and the assistance that you provide me.

Duane H

Cary, NC

Hi Cynthia. Just going through the PDF and watching the training videos for the Green Tomatoes system. I think you've really put something pretty spectacular together here. I REALLY love the different profiles for the different trading sessions. I believe this will be a HUGE help to me.

Greg A.

I Have been trading the E-Mini S&P 500 Futures and Forex for a while now, but since I incorporated Cynthia and Tink's Happier Trader Meditational video, it has impacted me psychologically and changed my perspectives of the markets and my style trading. The resulting effect has doubled my trading account balance with a high win ratio which was never achieved earlier. Now it's a breeze whenever I sit down to trade my strategy with full confidence. It's a real game changer!!

O'Sullivan S.

London

I have used several of Cynthia's previous systems but I think, having used the Neon Breakout only for a week, that it is in a class of it's own. I am used to trading 15 min. charts and so far every trade has been a winner, which is outstanding. As an experienced trader I do not expect all trades to win but this is certainly the best and easiest I have encountered to date.

For the record Cynthia has no idea I am writing this testimonial and I have never met her.

ROBERT TAYLOR

ASHTEAD

Hi Cynthia - firstly I would like to say I am thrilled with your Trend and Flat system and made my first 11 pips profit this morning on £/JPY this a.m. which I don't normally trade so took your advice.

Mike Butcher

Hampstead

Hi Cynthia. The Simple Neon Breakout system is so simple and profitable. I love your custom MACD which shows direction and strength of the momentum. I am excited to trade with it.

Andreas Efentakis

Australia