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.
Author Resource:-
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.
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