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This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.


I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program


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Until next time

happy trading 

Mr Phil Newton or on LinkedIn Phil Newton trader

News Release Trades.

Phil Newton's picture
folks have various methods of taking positions around news releases. With the recent hullabaloo surrounding the non guaranteeing of stop/limit orders concerning various brokers, it's become somewhat 'more' of a lottery than it was percieved to be before. Personally, I don't step up to the plate ahead of the news. I have done in the past, and quite honestly, have never found it to be a very effective method of obtaining consistant profits. Each to their own however, you'll find 'each way' comments regards this subject, and if someone has a particular forte for playing news, then all good & well. I've posted below a couple of charts highlighting the pro's & cons of stepping in & executing trades around these times, the first showing quite clearly, price "setting up" before today's U.S Retail Sales/Current a/c data. Price ambled down off the mornings highs & consolidated at the 7940 support camp. It's also todays main pivot juncture & an area of Fib support.....notice how MACD is confirming a positive slant & along with the ema crosses, price is indicating a bottoming pattern, ripe for a "long" play off this level......as it happens, the 1.30pm release merely nudged Cable north, back towards to the round number/prev highs......on this occasion, playing the trade off the 'normal' confirmers would have been the correct decision! It also 'set up' a reversal play off the resistance, and this could also have offered a post news trade (in my opinion) far safer than the "lottery" of climbing onboard a sweaty, stressfull long entry. lets look at the trade in a little more detail & see how an alternative entry may have been more opportune!.....You'll often observe brokers widening spreads around key news releases, but they soon come back to parity, and although I didn't personally 'play' either of these entries (busy with other things), the prices were available to trade on the platform I normally use. notice the reversal/pullback bar post news, and the price oscillation around the 7980/85 clip. A long entry at that point would have hitched a ride to the round number clip, enabling a quick 15-25 pip profit trade......however, waiting for the fallout & price set up around the highs would, in my opinion, have been a safer & more sensible trade opportunity......the 1-2-3/lower top short entry with confirming MACD & cross indication, represented a typical "reaction" trade on Cable with a clear journey south to the prev action clip. I realise all this looks fine with hindsight, but these are the type of trades readily available consistantly on this instrument. I trade these clips day in, day out as do other intraday traders......when this candidate is 'ranging' as it currently is, price moves in wide enough ranges to hitch a ride on the back of these regular chart pattern set ups.......there really is no need to risk your account playing with the "news fire"....just wait patiently for the opportunities to reveal themselves on counter trade moves & step in with tight exit controls.