Lets talk about trading on news. There is an economic calendar stating when certain economic indicator will be published together with its prognosis. The market is watching on these numbers. If economic indicator states an increase in economic activity then most likely its currency would rise. The market takes these numbers into account almost instantly after every publishment. Even a prognosis can start a new trend on forex. Most interesting fact is that big movements appears only if prognosis differ from actual data.
You should be very careful when it happens. For example there should be announced some economic indicators. After first one the market falls and after a minute executive tells us some positive news and market reverses. If you wanted to catch a big movement after first signs of a new developing trend then you may lose your money. Some forex brokers won't even allow you to open or close trades in that moments because of a big overload.
This trading technique is rather simple. If you learn how to use it then you may try to earn some money on forex only on certains minutes during a whole month. Because some economic indicators are published once in a month at certain time, you should be in front of your computer, only at that moment, and you must react quickly.
There is one more thing. If market was quiet in 1-2 days before publishing of important indicators then most likely there is going to be a really big movement. On the contrary if trading was going actively then news should not affect chart too much.
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