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How to Trade a News Breakout

Mon, Feb 2 2009, 14:29 GMT
by Forex Journal's Collaborators

The Forex Journal


This article is taken from the Forex Journal (January 2009 issue).

The author, Chris Capre, is the current Fund Manager for White Knight Investments. He specializes in the technical aspects of trading, particularly using Ichimoku, momentum, Bollinger bands, pivot and price action models to trade the markets


  • Chris Capre discusses a breakout strategy to employ when trying to trade Forex news events.

Considering the effect of news announcements on the markets, traders often gravitate toward news events hoping to capture a portion of the market response. In Forex trading, this phenomenon has drawn speculators interest to trading news events like vultures to an about-to-be-corpse lying in a field. It is important to have specific methods when trading such events because of volatility and the unique order flow surrounding them. If a trader is going to trade a news event in the Forex markets, we recommend that they pick the most significant of all economic events.

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Other article in this issue:

DPR International Pte Ltd  | One Raffles Place, OUB Centre #18-01, Singapore 048616
http://www.forexjournal.com/ | editor@forexjournal.com

Legal disclaimer and risk disclosure

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the authors and the publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. In commodity trading, as in stock, and mutual fund trading, there can be no assurance of profit. Losses can and do occur. As with any investment, you should carefully consider your suitability to trade and your ability to bear the financial risk of losing your entire investment. It should not be assured that the methods, techniques, or indicators presented in this magazine will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples in this magazine are for educational purposes only. This is not a solicitation for any order to buy and sell. The information contained herein has been obtained from sources believed to be reliable, but cannot be guaranteed as to accuracy of completeness, and is subject to change without notice. The risk of using any trading method rests with the user.

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