How to create a news based trading strategy ( Free Strategy )

"here we are on September 8th 2016 and unemployment claims come out for the dollar at 7:30 a.m. so let's check that out on the chart 7:30 a.m. on September 8th so right in here is our 7:30 candle and if we look back for our most previous resistance level you can use one of two resistance levels I like to use the most previous and that is this one here for me so with that being the case my entry would look something like this be a few Pips above that resistance level and also my sell stop would be below the most previous support level so as you can see the market never did did come down to hit that sell stop order instead we were bought into the market with a buy stop order just above our previous resistance and this trade obviously went on to hit targets as well"

"here we are on Friday September 9th and we have unemployment rate for Canada at 7:30 the very next day and 7:30 is going to be right here and again guys I like using the most previous support and the most previous resistance level for my orders so my sell and buy stop orders would look something like this few Pips under that for the sell stop which as you can tell never got touched and a few Pips above that for my buy stop and again guys here we have another winning trade based on that strategy"

"looking for another red flag news event for either Canada or the dollar and that brings us all the way to the 14th of September and we have crude oil inventories for the dollar at 9:30 a.m. so let's check out 9:30 on the 14th of September bring our horizontal line with us and here we are at 9:30 a.m. my buy stop would be 10 Pips or so above here 5 to 10 Pips above that and my most previous support level is right in here so that's what the sell stop would look like and in this case guys if that amount of time goes by 9:30 until 1:30 that's that's way too many hours have gone by without the market reacting so these red flag news events are supposed to be the most volatile news events for the market and if there's no volatility when the event comes out if this many hours go by then I cancel both orders so this would not have necessarily been a loss I just would have canceled the order after an hour or two of the market consolidating instead of creating a new trend or continuing in the trend it's already in"

"but if we head to the euro pound and the reason I'd like to share this with you guys is because this was an example of a technical strategy that I already use combined with the news that caused a very nice trade so if we head back out to the hourly chart which is where this position was taken so this trade was actually taken right up here using an entry reason that I teach over at the EAP and this is what I was talking about when I said combining the news with the strategy or strategies that you already use so previous OB l in my trading I as I've said would try to avoid news events altogether and at this point in my trading after a lot more experience and knowledge of the market I actually look forward to news events and because often times the news event will push the market in the direction your technical analysis or your strategy is telling you the market should go and that's exactly what we had happen here on the Euro pound we entered this trade as I said based on a entry reason taught over at the EAP and this trade was also entered on the day of the Euro interest rate decision and as you can see this Market has pushed down quite a bit since then we've already hit first and second Targets this last part of my position that you see is still on the screen is just an extra position that I like to let run and see how far it will go so for our second Targets on this trade we actually hit about 200 Pips"

"so if you wait to see what the market does after the news then you can start to create a strategy based on that so for instance let's say we waited on this big bullish reaction here from the news event well after that big bullish reaction you could start to create a strategy based around periods of consolidation or flag patterns so we see that we have a big bullish reaction from a news event after we have that big bullish reaction we can say okay now we're waiting for the breakout of a flag pattern we draw in a flag pattern here and there's our breakout so in this instance that would have been a successful strategy or at least a successful trade and that's one of the strategies that you can go through and test since having that free resource over at the Forex Factory you can have head over there and check out a news event find a red flag news event wait for the reaction from that news event and by the way guys right now we're on a 15minute chart this is applicable on any time frame you can wait on that reaction from the news event and then after that wait for a period of consolidation and a breakout"

"another more popular strategy that I've actually saw used more often is to put a buy buy and sell stop order and if you don't know what that is pretty much a buy stop order is going to buy you in above a resistance level or above where price action is and a sell stop order will sell you into the market below where price action is so for instance let's say this is a candle here and you have a sell stop order right here it acts as a limit order for when the market hits it even though it's below price action so as soon as the market hit it as soon as a candle touched that sell stop order you would be filled short and then you could decide where to put a stop- loss or maybe you already had a swing High over here somewhere and you have your stop loss set in just as with a limit order so having that knowledge and knowing that there's a big news event coming out before the news event let's say 30 minutes to an hour before the news event you could take and put a sell stop order 5 to 10 Pips below the most previous support level which would be right in there would be your sell stop order and you can put what's called a buy stop order right above 5 to 10 Pips above the highest resistance level and with that being the case you can see that if I put a long position tool here and you put your stop loss under the swing low again you could have easily hit Targets on this specific trade as well"

"right before big news event I always trade double tops or double bottoms if they happen on a pair that's correlated with that news event"