What mean Good for Currency in Forex Trading
Take CAD USD as example
“Actual > Forecast = Good for currency;” Next, we look to the “Currency” column heading and we see “CAD”. So we are thinking if the actual economic numbers are greater than what was forecast, it would be “Good” for CAD, meaning we expect CAD to get stronger against it’s counter-currency.
Example continued: OK, we are looking at USD/CAD. The econ numbers come out, and what do you know, the numbers ARE greater than what was expected. Well, if we also expect CAD to get stronger, then we should see USD get weaker, and so we would short the pair.
Never open a new trade during the news release. Instead, you have already opened a trend trade much earlier. That trade must be +35 or more before the news release. Set SL for net +1 AND a graphic horizontal line at the same +1 level. Use this line as a master R/S level for the next 24 hours. IF, and only if, price does not consolidate around the R/S line, you will profit from the news release, even if the retracement is significant. Try it. You’ll like it.