Types of Market Reactions: 1. Follow The Deviation

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3 Types Of Market Reactions – Closer Look:

When a news event is released, you can expect to do one of the following actions:

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  1. Follow the deviation to BUY or SELL…
  2. Wait for Market to move to a range and take a reversal trade, or
  3. Do Nothing.

 

1. Follow the Deviation

Making sure that the market is showing proper first reaction, meaning if the deviation for BUY is indeed moving the market up or deviation of SELL is moving market down.

If you are waiting for Retracement, wait for retracement based on dual FIB levels, one from the daily range and one from the Movement, then find where the Fib retracement levels intersect for stronger reversal levels, usually the first significant level.

 

About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

Comments

  1. Good morning Henry! Thank you for the Wbinar Nr 3! EXCELLENT ! I ‘d very grateful to have a little word from you very QUICKLY to my 5 simple questions (tickets: 3639 and 3642)

  2. Hello, Henry
    Is it really possible to tarde the News with MT4 broker?
    With mine one (PFG) it is impossible: from the moment I click
    “Buy” button till my order filled – it took up to 20-40 seconds
    during news “hot” times, so I’m left wit small profit at maximum:
    for example: if at click – I had 40 pips profit, by order
    being filled – it may be only 10 pips of profit, or even – loss of 10-20 pips.
    Pending stop and limit orders are not filled at desinated price as well,
    but – rather 30-40 pips away.
    Which MT4 broker are you using and could recommend?
    Or – it is not MT4 one, then – which one?

    • Then don’t trade spike trades all the time. Wait for retracement and you should get filled instantly.

  3. OK, after downloading it finally started playing but it never gave me a place to save it. Where do I find it on my computer if it did download. Sorry I can’t figure it out.

    • right click on Download, then select “Save as” or “Save Target As”
      This is very basic internet and computer knowledge.

  4. Henry, You are relly the obama of our time, thanks alot for all these things you are sharing with us. We really appeciate you. Henry How can i be receiving signal from you, and I need more explanation on how to calculate the economic new, the Deviation, forcast and the actual, Waiting to hear from you.

  5. Henry,
    Do you offer paid trading rrom subscription,
    so I could see and follow you trading News live?
    Where to subscribe, if yes?

  6. I would appreciate a personal call fom you or a member of your staff since I have been following your education for a while now and I do believe I have matters to discuss with you if you would kindly oblige me by giving me a call in response to my message. Thanks!
    Regards,
    Ray B.

  7. Hi Henry, Your webnairs are excellent and I enjoyed them very much. I ‘m a student of other services but I must say in comparisson that your explanations and information are very logical and I can follow you when you are explaining as you go along. It’s just a matter of time before I join your service because I have made some bad decisions that i regret right now. I could have been making some pips already if I was trading with you but my bad decisions have my hands tied at the moment. I just finished listening to part 11 of the Mastermind Mentoring Series and I can’t tell you enough of how empressed I’m with the information that i just received and now the excitement is starting to build.
    Regards,
    Ray B.

  8. Henry, waiting for the part III of this mentoring Forex Master Mind

  9. Walter James says:

    Hi Henry!!! I appreciate all the time and effort you put in to help us become better traders.
    We all need that little extra tutoring and your years of expertise are beneficial to guide us
    to make better trades. I am grateful for all the effort and commitment you put in to help us.

    Thanks

  10. Can anyone help???
    I have downloaded the video file but am unable to play properly
    Quick time gives me error code 8971
    WMP only plays audio but no video
    May be codec problem, not sure. Has anyone else downloaded video files and if so what have you used to play it.

    Any help would be greatly appreciated

    Kevin

  11. Hi, Henry
    Thanks for great amount of info.
    I was trying to trade News according to your techique with my MT4 broker (MB Trading).
    I’ve put buy stop order at price 1.5 (prices are short as for this example) and stop-loss of 1.4
    and profit-target of 1.6.
    On news spike, however, initial movement down was so fast, that my order was filled
    and stopped immedeately at price of 1.8.
    Then only price started to move up – but I have no pending buy order waiting anymore.
    Broker takes no responsibility and respect to pending orders during News.
    So, putting pending orders won’t always work.
    Entering into the trade manually is also subject to huge slippage on spike candle.
    Not sure, what I can do here.

    • What you are doing is called “Straddling”. Remember there are nothing new under the sun, and every single way to trade the news, I have personally tried before and if they are not part of my 3 methods of news trading, are because they don’t work or they don’t provide any consistency. The best way to trade the news is to understand the news and learn how to properly take advantage of them…

  12. These are very good videos covering a lot and covering it all very well. However, something I have noticed with the majority of this type of video is the charts always show a lot of history (thats important) the current position (mostly what is being talked about) and the future (what happened after the trade decisions)
    Is it possible not to include the future portion in the training but afterwards to show how the trade went in a seperate chart?
    I find it hard trading without the future on my trading screen and would like training without seeing what has happened before I do it. Does that make sense?
    Keep up the great work.
    Robert.

    • It would make sense and that is what we do everyday in the traderoom… however if you don’t first learn the basics of the trade, it is hard to talk about what happened after.

  13. Hello Henry,
    Thanks for all the information you share, I’ve learned so much from you.
    I tried to download the video via the link provided but I keep getting an error message – “source file could not be read”. Please help! Thanks

  14. Hi:
    Can you email a link to Part 1, thanks.

  15. bayo ayinde says:

    Henry, you are simply God’s sent.

    Many thanks…..

  16. Trading in the “real” world. i would say after the guru/hype stuff i been through one year ago as a newbie.. this is what future newbie`s deserves to end up with. an unselfish great teacher who do actual trade for a living in a real logic way:-) so thanks again for your support, wish you the best:-)
    Lars.

  17. William Foo says:

    Thanks Henry. I appreciate it.

  18. Alexander159 says:

    Thanks Henry! You are awesome!

  19. Thanks a lot Henry, your support to the forex community is invaluable. I ‘ll be looking forward to the download link for the video when available.

  20. hello Henry, please i wanted to download your video and the PDF on mastermind-mentoring but i can’t access my account see want it is saying please help me. Sorry, the account you tried to access is currently unavailable from your IP because of too many requests. If you are the owner of this account, please contact [email protected] for assistance. Please reference “Web Form Throttle: np-mentoring 82.128.17.5” in your support ticket

  21. kevin holmes says:

    thank you Henry for giving so generously your time and expertise. not many people are willing to share their knowledge. you are appreciated

  22. andrea orani says:

    interesting material Henry. Thanks for educating

  23. again thank you for receiving our opinions and share your experience…………..;)
    I´m suscribed the third webinar.

  24. Nikos Stavropoulos says:

    Dear Henry, I have been trading for a long time and can be considered “successful” but never traded the news, as a matter of fact totally avoided trading during major releases. The price paid for that is many hours and effort for each trade. Worse, even though my trades were technical based, I realized what you said that subconsciously I was actually taking into consideration the elements you discuss. After all this years, I am ready to adapt to a different style and humbly digest your experience.

  25. Hi Henry. Is it possible for me to download the webinars so that I can watch them offline when my internet connection is not running?

    • Yes, as soon as the file has been propagated to multiple servers, I will put the download link up asap. Seems if I allow download right now, my server will probably crash 🙁

  26. henry i owe you a beer or as many as you can drink or smoke or eat you name it.
    Ive managed a healthgy 1046.6 pips using your stystem along side of my TA skills.
    please keep this training going this information is the only thing ive ever understood in relation to difficult news situations
    your an absolute jem

    • Impressive! I hope you don’t mind sending me a picture of you and allow me to use your testimony 🙂

  27. Hi Henry. These two parts have been extremely informative. Thanks a million. I also get your daily trading plan, which has some serious insight and I find it very useful for my trading. You are right, trying to get in with these fast-click things does not work for me – this is much better.

  28. This is very comprehensive for people us (the newbies). Thanks for the support.

  29. Please don’t forget to register for the next webinar on September 27, 2010 at 3:00pm

  30. I was there online, very interesting. The last question Henry answered was mine. I’ve asked a couple more that were answered by chat by one of his assistants.

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