Step 1: Go to ForexNews.com and scroll down to the bottom of the page to find out what Forex News releases are coming out.
Then, click on Complete Calendar for Current Week link.
Step 2: Now, look at the Calendar for News releases that affect the Forex market. The ones particularly to look for are the
following news announcements:
1. Unemployment Reports (Non-Farm Payroll)
2. Interest Rates
3. Consumer Price Index (CPI)
4. Inflation Reports
5. Gross Domestic Product (GDP)
6. M2 (Money Supply)
7. Treasury Budget
8. Producer Price Index (PPI)
9. Retail Sales
10. International Trade
Unemployment Reports are released on the first Friday of every month at 8:30 am EST for the prior month (this is a big one you
should always attempt to trade!), and every Thursday at 8:30 am EST they release a weekly adjustment (less important but still a
good possibility). CPIs are released 8:30 am EST around the 13th of each month for the prior month. International Trade is
released 8:30 am EST around the 20th of the month (data is for two months prior). PPI released around 11th of each month at
8:30 am EST for the prior month. Treasury Budget released 14:00 EST around the 3rd week of the month for the prior month.
GDP released 3rd or 4th week of the month at 8:30 am EST for the prior quarter, with subsequent revisions released in the 2nd
and 3rd months of the quarter. M2 released Thursdays at 16:30 EST data for the week ended two Mondays prior. NAPM
(National Association of Purchasing Managers) released 10:00 am EST on the first business day of the month for the prior month.
Retail Sales released 8:30 am EST around the 13th of the month for one- month prior.
Events for week of 1/25/2006
Time (NYT)Location Description Forecast Previous Actual
2006.01.23 06:00 UK Jan CBI Trends -- -- -- --
2006.01.23 10:00 US Dec Leading Indicators 0.1% 0.5% 0.1%
2006.01.25 04:00 GER Jan IFO Business Expectations Survey 99.8 99.6 103.6
2006.01.25 04:00 GER Jan IFO Business Current Conditions 99.8 99.6 100.4
2006.01.25 04:00 GER Jan IFO Business Climate Survey 99.8 99.6 102.0
2006.01.25 04:30 UK Q4 GDP 0.5% 0.4% 0.6%
2006.01.25 10:00 US Dec Existing Home Sales 6.90 mln 6.97 mln 6.60 mln
2006.01.26 08:30 US Weekly Jobless Claims 295K 271K
2006.01.26 08:30 US Dec Durable Goods Orders 1.0% 4.4%
2006.01.27 04:00 E-12 Dec M3 Money Supply Growth y/y 7.5% 7.6%
2006.01.27 08:30 US Q4 GDP - advanced 2.8% 4.1%
2006.01.27 10:00 US Dec New Home Sales 1.230 mln 1.245 mln
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Step 3: Only Trade the following currency pairs as they appear at this time to move more than the others: EUR/USD, GBP/USD,
USD/CHF. Do not attempt with real money (just demo) to trade other currency types with this strategy. Notice the above
information. I removed all nations that this system does not work with.
Now that you know at what time you need to be at your computer ready to make the trade, we need to get ready 5-10 minutes
before the announcement to trade.
Step 4: Watch how I setup my chart for a news release. In VT Trader platform. Make sure you are setup to the 1 minute chart on
the currency pair you are planning to trade.
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Step 5: As you can see above, the current price is 1.7831.
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Step 6: Right Click on the chart about 10-15 pips above the current price and click EntryStop Buy. You are requesting to buy
when the currency hits your price.
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Step 7: Enter the amount of contracts you want to trade (in this example it is 1) and enter a Stoploss for 10 pips. Press OK.
Step 8: Click OK again to confirm.
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Step 9: Now, do the same thing below the current price, except add in a EntryStop Sell 10-15 pips below the current price.
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Step 10: Enter the amount of contracts you want to trade (in this example it is 1) and enter a Stoploss for 10 pips. Press OK
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Step 11: What did you just do? You took the price range of the currency pair and stretched it 10 pips up and down to add a little
bit of a safety net. You told the broker that if the price of the currency pair goes up to that high point then you will “BUY”, and if
it goes down to the low point then you will “SELL”. You also told the broker to stop you out after losing ten pips incase of
whiplash if that should happen.
If the price happened to go “UP”, and you would have ended up “BUYING” the currency pair. It could just as well gone
“DOWN”, and you would have ended up “SELLING” the currency pair. It doesn’t really matter with this strategy which way it
goes, just that it moves a lot of pips.
You could also, set the optional profit limit to 20 pips. So basically, you don’t have to know if the news is going to be good or
bad. All you do is wait until one or the other is executed on news. Once one or the other is executed, you simply cancel the other
order and then wait and take a profit when you think is best (20-30 pips is usually about average). However, don’t wait to long
because the price could drop very quickly after the initial run.

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