By the end of this tutorial, you will know how to use the calendar as well as how to read it in a way that is beneficial to your trading. So in a long trade on this currency pair, you are buying, or going long on, the dollar and you’ll simultaneously go short on the yen. In effect, you are selling the yen, just https://www.sitejabber.com/reviews/dotbig.com like when you short a stock by selling shares. Because every currency trade involves a pair, you will always simultaneously go long on one currency and short on the other when making a trade. When you are long on a currency, it means you are betting the base currency will strengthen against the quote currency.
- Some of the reasons that traders go long come from technical as well as fundamental developments.
- On balance, the firms continued to report increases in employment, and the employment index moved up from 25.5 to 28.1.
- In this month’s special questions, the firms were asked to estimate their total production growth for the second quarter ending this month compared with the first quarter of 2022.
- In effect, you are selling the yen, just like when you short a stock by selling shares.
- The share of firms reporting expected increases in first-quarter production far exceeded the share reporting decreases .
Traders also tend to go long when the currency price comes down to a well-defined support level or a price floor. Because you’re both buying and selling currency when you make a forex trade, you can speculate on both the upward and downward movements. In forex trading, to go long means to buy with the expectation that your purchase will rise in value. By Samuel Indyk LONDON, June The euro rose on Tuesday, drawing support from the European Central Bank’s plans to raise interest rates to…
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This of course can change depending on the last two factors listed above. This is obviously the safest place to be with major news around the corner. You have nothing https://www.trustpilot.com/review/dotbig.com at risk and you get to objectively analyze the price action that forms as a result of the news. It can be far too easy to get caught up in the nuances of each event.
If forexfactory.com is down for us too there is nothing you can do except waiting. Probably the server is overloaded, down or unreachable because of a network problem, outage or a website maintenance is in progress… While the pin bar represents a volatile push in either direction, the inside bar represents consolidation after a large https://www.usbank.com/index.html move. In my experience, most traders fear a missed opportunity more than they fear losing capital. Every trader is different and therefore has different requirements when it comes to how risk averse they are. From the screen above, you can see additional details such as the source, frequency and history of the event to name a few.
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I personally like to focus on the medium and high-impact news events. This gives me a complete picture of what to expect over the coming days without cluttering the calendar with news that will have little impact on the markets. By now you should know how to configure your dotbig forex broker review calendar as well as how to manage news events. Let’s finish up this tutorial by discussing how price action plays a role in all of this. The time frame – On average, a trade on the 4 hour chart will require less time between the entry and the pending news than a trade on the daily time frame. This is because, hypothetically speaking, a trade on the 4 hour chart has a greater chance of running to profit before the news event occurs. This means setting the filter to include only the medium and high-impact news events.
While it isn’t necessary to study the news, it is advantageous to know when news is expected. This is especially true for heavy-hitting news that can adversely affect the market. Not only can this type of news affect an open position, it can cause slippage and gaps that can wreak havoc for pending orders. Trend-following traders who watch trend acceleration often go long on a trade position and hope to stay in that trade until the trend expires. Technical reasons for going long often include currency prices breaking through a certain price-level resistance or a price ceiling. This would show surprising strength in the currency’s price mobility and that a new market imbalance may be developing that could turn into a strong trend.
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By doing this, you don’t have to sift through the low-impact news to find the events that are likely to cause increased volatility. Many technical traders make the mistake of thinking that, because they take a technical approach to the market, they don’t have to pay attention to news events.
: Stock Market News
This will synchronize the time for each news event with your local time. To go long on a certain currency, you open a trade in a buy position, because you believe the base currency is bullish—likely to rise in value. At the same time, it also means you are bearish on the value of the quote currency, and think it will fall. News aggregator userwalls.news – all main dotbig trading platform review news from the world of finance, investment, business, politics, sports, technology from the top sources around the world. Stay up to date with major world events, create your own news feeds , save time reading news. By Saikat Chatterjee LONDON, May The euro’s losses deepened on Tuesday after data showing euro zone inflation hit a record high in May, but…