Pocket Option Strategy Trading by news
Pocket Option Strategy Trading by news refers to fundamental strategies, but does not exclude the need for technical analysis. The chart does not always behave as predicted after the news is released, which is why the ability to wait is the main assistant of a trader in profitable trading on the news.
Why should I use this strategy?
Trading on the news is one of the most attractive, but at the same time, quite complex trading strategies in the foreign exchange markets.
Every day there are various news in the world that dictate the direction of price movement in the short term. The market unites the currencies of most countries, which means that the economic or political news of a certain state will reflect the exchange rate of the national currency in pairs with others. This opens up wide opportunities for successful trading.
How is it profitable to trade on the news?
First you need to turn on the candlestick chart, if you haven’t done it before. It opens via the “Graph Type” parameter:
In addition, we will need an economic calendar, which is located here:
Our economic calendar is very easy to work with: pay attention to news and events that have a high impact on the market – they are indicated in red:
Every time, before the start of a trading session, it is necessary to view the economic calendar. Quite often during the release of important news, previously reliable indicators and trading systems give false signals – this is not surprising, because the fundamental factor can bring huge volatility to the market.
That is why experienced traders prefer to take a break on the eve of the release of important news. Hence the low activity in the markets, from which horizontal price directions can be observed on the charts. However, this allows us to mark the price channel. After the news is released, there is a movement, and as soon as we notice a breakout of the price channel, we need to immediately enter into a deal in the direction of the breakout.
Our example shows that the news release on the market brought a large volume of buyers, which is why the price channel was broken. This means we need to buy the option UP:
It is worth noting that after a sharp jump in the exchange rate after the news, most often, it gradually returns to the level at which it was before the information was released. Accordingly, if we did not have time to open a deal in the right direction immediately after the news was released, then it is better not to take risks and not try to catch the outgoing trend – it is better to pause and return to trading in a couple of hours when the market “digests” the news and stabilizes
Expiration: 15-30 minutes
Investment: 2% of the deposit
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