Trader Dale Volume Profile
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Macroeconomic news<br />
advantage of using this indicator is to know what to expect and to be able to make a rough plan<br />
before the actual macro event starts.<br />
You can use this tool for example when you are in a trade, and<br />
some macro event is approaching. You can check what the<br />
volatility during this event usually is and then decide whether to<br />
hold the position through the news or if it is too much a risk and it<br />
is better to close the position instead.<br />
Based on data from this widget, you can also check how strong<br />
any given macro historically was and decide beforehand if some<br />
of your levels get hit during the news whether you will take the<br />
trades or rather wait for the price to shoot past your level and take<br />
a Reversal trade in the direction of the new trend.<br />
With Economic impact<br />
tool, you can easily<br />
check the historical<br />
volatility caused by<br />
any standard<br />
macroeconomic news.<br />
Tip #5: Which news affects which fx pair<br />
I am usually careful about trades on fx pairs that are directly connected to the upcoming macro<br />
events. For example when there is a major news affecting the USD, then I don't trade any fx<br />
pairs with the USD. If there is major news concerning the AUD, then I don't take any trades of fx<br />
pairs with the AUD. It is quite simple. What is more tricky though, is macro news that affects some<br />
fx pairs indirectly. The most common ones are:<br />
<br />
<br />
Oil news: Those affect the CAD because the Canadian economy (and the strength of CAD)<br />
is dependant on the prices of oil which Canada produces.<br />
"World economy danger" news: When there is something dangerous happening in the<br />
world, it is a known fact that money flows into safe-haven currencies. Such currency is the<br />
JPY. In situations like this, the JPY is affected heavily, and it strengthens. Even in cases<br />
when Japan is in danger. A good example is a strong tsunami that hit Japan a few years<br />
back. As a reaction to this JPY strengthened - despite Japan being the victim! The currency<br />
was still considered a safe haven, and it strengthened. So, whenever the JPY spikes and<br />
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