Forex news trading robot is used in trading the market based on news events that have the ability to affect the forex market. Based on reality, the forex market is moved by certain events that have to do with economy, politics, employment rate, and other such things, including natural disaster. While some of these activities are unforeseen, some others are planned and dated. This is why certain planned speeches, as can be seen in the forex calendars, have the power to either increase or decrease the value of a commodity.
THE FOREX CALENDAR:
A forex calendar, also known as an economic calendar, is a record of an organized forex related events used by forex traders to track events that are most likely to move the market. This tool is useful to every trader that trades the forex news, and is the basis of the functionality of any forex news trading robot. Every event featured in this calendar is known as an economic indicator, and has the ability to introduce varying levels of volatility into the market depending on the importance of the event. Some of the most influential events featured there in are
- Interest rate decisions
- Non-farm payroll number
- Changes in gross domestic products (GDP)
- Consumer price index (CPI)
- Purchasing managers’ index (PMI)
HOW TO TRADE THE NEWS:
Let us take a look at one of the strategies that can be used to trade forex news. This will give us a better understanding of what the forex news trading robot does.
There are different strategies that can be used to trade forex news. Some of them are
- The slingshot strategy
- News reversal
- Use the news long term strategy
We will do a little detail on the news reversal strategy
NEWS REVERSAL STRATEGY OF TRADING FOREX NEWS:
Here, traders look to go into the release with some form of support and resistance levels as they wait for the news. When there is an already established level before the news comes along, there is a huge possibility that that level will be exceeded. If that is the case, the trader can take advantage of that condition, but with caution though, this is because not all such levels hold for a long time.
The forex news trading robot have all calendar events programmed in it, and it works with it in trading the forex market automatically; that is what robots do.
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