Forex News Trading Insights 2 – Double Fibonacci System – Your entry matters…
One of the most asked questions on news trading is determining your entry. Let’s face it, spike trading is dead, with brokers playing tricks on you, widening the spread, delaying execution, nasty slippage, you name it…
Unless you still deal with a broker from the dark ages of online trading, chances are you won’t find one that lets you trade the news profitably, at least not for spike news trading…
And for those still exploiting such brokers, you might risk account closure, or your broker may outright take your money away based on exploiting the market.
For those who don’t know what News Spike Trading is, it is a style of news trading in which a trader executes his/her order immediately after a high-impact news release to take a position seconds before his/her broker updates the price feed.
Since significant news usually causes the market to a spike in either direction, and this method aims to capture that spike, thus it is called news spike trading. This is, in essence, exploiting your brokers as they have to suffer financial loss due to latency in their price feed and actual market reaction.
I think is essential to understand this fact before we look at what I’m about to share. Here is an analogy: Imagine one day you got a credit card in your mail, which has no limit on the card. It’s a mistake, but you decided to use it anyways; after all, it’s free money, so you thought… until one day, someone catches on and cancels your card… This is exactly what is happening with news spike trading.
Remember, your brokers are necessary evils in your trading. They provide a service, and they should get compensated, and when the market is moving in sharply due to news releases, they have the right to protect their interests; all you need to know are the rules of the game and play by the rules…
That’s why what I am sharing with you will make so much sense to you if you trade the news; it’s called the Double Fibonacci Method.
I use this method daily to calculate my entry after the news, and I have seen firsthand how accurate this method is. You can use this with any high-impact news and pinpoint your entry after release, preventing you from jumping in too late or too early.
So, without further ado, here it is:
Could you have it in a downloadable format…so we could just watch it on deskstop after downloading it for the sake of folks like us that have problems watching it streaming online. Guess its due to poor bandwith here. Thanks.
Check out my youtube account, I should have that video listed there as well… http://www.youtube.com/henryliuforex
Could you have it in a downloadable format…so we could just watch it on deskstop after downloading it for the sake of folks like us that have problems watching it streaming online. Guess its due to poor bandwith here. Thanks.
Check out my youtube account, I should have that video listed there as well… http://www.youtube.com/henryliuforex
Cant seems to watch the video. Not loading beyond well. Have been following your news trade alert. Very great. Lots of hard work you putting into your game. I respect you. However, is there a way I can get to see this double fib system?
Cant seems to watch the video. Not loading beyond well. Have been following your news trade alert. Very great. Lots of hard work you putting into your game. I respect you. However, is there a way I can get to see this double fib system?
Hi,
I am using FXCM and a newbie. I am workgn on a demo account and have wasted lots and lots of money in Fibonacci. I have gone through your Fib tutorial and other tutorial in Youtube….I am following the exact methods but still not able to get the retracement working for me…Infact the market looks so flat in 5 mins or 15 mins that I am unable to find out where to dray fibs line….please help…
I have also lost 100 dollars in a realy market 🙁
Hi,
I am using FXCM and a newbie. I am workgn on a demo account and have wasted lots and lots of money in Fibonacci. I have gone through your Fib tutorial and other tutorial in Youtube….I am following the exact methods but still not able to get the retracement working for me…Infact the market looks so flat in 5 mins or 15 mins that I am unable to find out where to dray fibs line….please help…
I have also lost 100 dollars in a realy market 🙁
i thank you
i have been following your news alert infact is good but one 6hing i will like you to explane to us out there is exctly when to enter the trade after the news is been release is it 30 mins or 40 mins thank you for been in there for us
I usually wait about 5 to 10 minutes for a retracement. Every situation is unique, but the common denominator is to wait for decent retracement, and that could be calculated by the double fibo method.
i thank you
i have been following your news alert infact is good but one 6hing i will like you to explane to us out there is exctly when to enter the trade after the news is been release is it 30 mins or 40 mins thank you for been in there for us
I usually wait about 5 to 10 minutes for a retracement. Every situation is unique, but the common denominator is to wait for decent retracement, and that could be calculated by the double fibo method.
please sir i anter this forex trad but one thing that holding me to not treding is that i dont have any one to teach me how to trad so i realy need your help
please sir i anter this forex trad but one thing that holding me to not treding is that i dont have any one to teach me how to trad so i realy need your help
Hello Henry and Thank You For Your Share.
I have 2 questions.
1- We Will Go To Trade With Double Fibonachi When News Release Has Been Deviated?
Cause Some times It is Possible That News Hasn’t Deviated But Market Has a Good Movement.
2- What is The Best Point For Our Stop loss?
Regards.
Ali reza
1. Only after the deviation is hit, which is the first requirement for trading news. If deviation is not hit, then stay out of the market.
2. You put SL 30 pips but never beyond the pre-release level.
Hello Henry and Thank You For Your Share.
I have 2 questions.
1- We Will Go To Trade With Double Fibonachi When News Release Has Been Deviated?
Cause Some times It is Possible That News Hasn’t Deviated But Market Has a Good Movement.
2- What is The Best Point For Our Stop loss?
Regards.
Ali reza
1. Only after the deviation is hit, which is the first requirement for trading news. If deviation is not hit, then stay out of the market.
2. You put SL 30 pips but never beyond the pre-release level.
Hi Henry,
I am in Glasgow in the UK unfortunately I cant see your video for the Double Fib Method,
Do have a soultion for this?
Thanks
Les
Not sure Les, Youtube is not available in UK?
Hi Henry,
I am in Glasgow in the UK unfortunately I cant see your video for the Double Fib Method,
Do have a soultion for this?
Thanks
Les
Not sure Les, Youtube is not available in UK?
And following on from that Henry,
I just wanted to be clearer on your ‘golden rule’ i.e. getting out if it goes above pre-release at 2:17.
Could your clarify that?
When you say when the price goes above the pre-release level … do you mean the price at the top of the long blue bar or the bottom of the blue bar … my feeling is you mean the top of the bar right?
Therefore … after the spike, you’re waiting for it to retrace somewhere below 143.70 (on the chart at 2:32) …. and then take a position in the 143.0-143.70 range right? Depending on what the strength indicator says.
Is this correct?
Thanks again Henry.
Pre-release is where the price is just 1 second before the release. Don’t get caught looking at candle, look at the price, see where it is and write in down if you need to.
Henry
And following on from that Henry,
I just wanted to be clearer on your ‘golden rule’ i.e. getting out if it goes above pre-release at 2:17.
Could your clarify that?
When you say when the price goes above the pre-release level … do you mean the price at the top of the long blue bar or the bottom of the blue bar … my feeling is you mean the top of the bar right?
Therefore … after the spike, you’re waiting for it to retrace somewhere below 143.70 (on the chart at 2:32) …. and then take a position in the 143.0-143.70 range right? Depending on what the strength indicator says.
Is this correct?
Thanks again Henry.
Pre-release is where the price is just 1 second before the release. Don’t get caught looking at candle, look at the price, see where it is and write in down if you need to.
Henry
Hi Henri,
I understand your video here and the double Fib technique, but at what moment do we get in to the market (Buy or Sell). What would be the result?
Thanks
Patrick
Patrick:
You do this after the news release and once you enter you shoot for 30 pips or more in profit.
Hi Henri,
I understand your video here and the double Fib technique, but at what moment do we get in to the market (Buy or Sell). What would be the result?
Thanks
Patrick
Patrick:
You do this after the news release and once you enter you shoot for 30 pips or more in profit.
Hi Henry Liu,you are absolutely a guru in forex.your currency meter have been of great help to me. Now you are here with another great revelation.Thanks a million. However,i still need to learn how to use the double fibonacci system to get a better entry point.The meter is really great.
Hi Henry Liu,you are absolutely a guru in forex.your currency meter have been of great help to me. Now you are here with another great revelation.Thanks a million. However,i still need to learn how to use the double fibonacci system to get a better entry point.The meter is really great.
can you develop this into software?
2.what time frame should i use for news trading the pre-release time -fibonancci plotting-chart
3thank you
OJ:
As long as you can see the opening of the trading day, so 30min to 1 hour seems appropriate. I guess you can make an indicator, but I don’t think I know enough MQL4 language to do that.
can you develop this into software?
2.what time frame should i use for news trading the pre-release time -fibonancci plotting-chart
3thank you
OJ:
As long as you can see the opening of the trading day, so 30min to 1 hour seems appropriate. I guess you can make an indicator, but I don’t think I know enough MQL4 language to do that.
Dear Henry
First, thank you very much for the information.
Second, as a forex trader I experienced whatever you mentioned. Honestly, that is my problem too.
Third, unfortunately I can not see your video posts! I am using Mozilla Firefox but I can not see it.
I wonder if there is any other link or file to download this video?
Also, I couldn’t watch the video of “News Profiteer Meter” too.
Regards
Leon:
Is it because of your equipment, your region, or just you don’t have the latest flash player? I’d get better PC since they are so cheap now, and try to update my flash player from adobe.com, and lastly, get an U.S. Proxy server so that I can watch U.S. videos
Henry
Dear Henry
First, thank you very much for the information.
Second, as a forex trader I experienced whatever you mentioned. Honestly, that is my problem too.
Third, unfortunately I can not see your video posts! I am using Mozilla Firefox but I can not see it.
I wonder if there is any other link or file to download this video?
Also, I couldn’t watch the video of “News Profiteer Meter” too.
Regards
Leon:
Is it because of your equipment, your region, or just you don’t have the latest flash player? I’d get better PC since they are so cheap now, and try to update my flash player from adobe.com, and lastly, get an U.S. Proxy server so that I can watch U.S. videos
Henry
hello mr henryliu i am george one of your news trader and i love trading forex but i started forex from 2008 but up till now i can realy say i make a good money from it because many time i make an loose it but when i meet you on line i improve in my trading knowlegde but i want to know when you see risk aversion when to enter the trade and also risk appetit and when to know that confirm that it real and which time to inter please let me know about it
George:
Watch my “7 best uses” video on CurrencyStrengthMeter.com
Thanks
hello mr henryliu i am george one of your news trader and i love trading forex but i started forex from 2008 but up till now i can realy say i make a good money from it because many time i make an loose it but when i meet you on line i improve in my trading knowlegde but i want to know when you see risk aversion when to enter the trade and also risk appetit and when to know that confirm that it real and which time to inter please let me know about it
George:
Watch my “7 best uses” video on CurrencyStrengthMeter.com
Thanks
Hi Henry> How long do you wait untill you start the retracement?
Tim:
As soon as the market starts to move, and sometimes it takes up to 30 minutes, but I stay away from the market after the first 45 minutes is gone.
Hi Henry> How long do you wait untill you start the retracement?
Tim:
As soon as the market starts to move, and sometimes it takes up to 30 minutes, but I stay away from the market after the first 45 minutes is gone.
Hi henry
When doing the double fib technique you say to take the first one from the day low to the day high.
If your predicting the market to drop do you do the opposite and take from the day high to the day low?
RYan
Right, you always take it so that if the market retraces 100%, you would be back at 0.00% instead of 100%.
Henry
Hi henry
When doing the double fib technique you say to take the first one from the day low to the day high.
If your predicting the market to drop do you do the opposite and take from the day high to the day low?
RYan
Right, you always take it so that if the market retraces 100%, you would be back at 0.00% instead of 100%.
Henry
Hi Henry,
Good piece of work. One question : Will you be able to make this into an eBook?
WK
Maybe in Ebook 3.0 when I get around to make an update.
Hi Henry,
Good piece of work. One question : Will you be able to make this into an eBook?
WK
Maybe in Ebook 3.0 when I get around to make an update.
Hi Henry,
thanks for your insight.
With the fibonaccis (fibs) I usually just draw the second fib that you draw … AFTER the news release … and wait for it to track back to about 30-50% of it’s highs after the news event.
I don’t see why you need it to overlap (the 1st fib and 2nd fib) … could you clarify this?
I just find when you have 2 fibs drawn from the beginning of the trading day and when they overlap, market tends to regard that as stronger levels. I guess different traders use different way and ranges when drawing FIb lines, and adding that additional fib helps day traders especially if we see pre-news pricing in at the open.
Hi Henry,
thanks for your insight.
With the fibonaccis (fibs) I usually just draw the second fib that you draw … AFTER the news release … and wait for it to track back to about 30-50% of it’s highs after the news event.
I don’t see why you need it to overlap (the 1st fib and 2nd fib) … could you clarify this?
I just find when you have 2 fibs drawn from the beginning of the trading day and when they overlap, market tends to regard that as stronger levels. I guess different traders use different way and ranges when drawing FIb lines, and adding that additional fib helps day traders especially if we see pre-news pricing in at the open.
Good day, Mr Henry Liu.
please sir, i have loose a lot of money in forex and i don’t want to quit this forex because i know that i will make here in forex. Please sir, how can you help me out of this mess.
I suggest that you trade demo account until you are making money with it, then transition to real account slowly, first with mnimum deposit then add as you go.
Good day, Mr Henry Liu.
please sir, i have loose a lot of money in forex and i don’t want to quit this forex because i know that i will make here in forex. Please sir, how can you help me out of this mess.
I suggest that you trade demo account until you are making money with it, then transition to real account slowly, first with mnimum deposit then add as you go.