Powerful trading concepts to boost your consistency and long-term performance in the Forex, Indices & Commodities markets.
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Ok, I know you clicked on this article because of the clickbait title. But the truth is, I lied. I won’t be revealing any secret technical indicator here. No clever algorithm for the market that will give you a killer win rate. No magic.
It’s more simple than that. The indicator that shows what day the market is most likely to move, which we’re going to talk about here, has in fact been here all along – hidden in plain sight.
It’s a time-based indicator. Can you guess what it is?…
No More Struggle of When to Enter a Trade
Does this keep happening to you?
- The market moves very slowly in your favour, but very quickly against you.
- You get stopped out, only for the market to go in your expected direction later anyway.
- You wait for ages for price to move, then decide to close the trade, and then it begins to move.
- You find yourself saying: “It’s like the market knows what I’m thinking and is against me!”
Don’t fret, there’s a solution
The Secret Indicator
Even though you know what PRICE LEVEL to trade at, the reason for your struggle is likely to be that you don’t know the right TIME to enter. Perhaps you’re too early.
So what’s the solution to the question of time? The News Calendar of course!
This is the ‘indicator’. You are being told ahead of time when a move is likely to begin. All other indicators you see placed on charts are lagging. They read price, and then give you a readout. This is the only one that is a leading indicator, which does actually indicate when to trade.
Of course, there are some guidelines on how to use it well.
- Use the High Impact events only – these are the red folders
- Get the Time right – note when they happen in the week
- Most of the weeks, they usually happen on Tue/Wed/Thu – occasionally you get Mon/Fri
- Merge the Time/Day with your Technical Analysis of price action and the area/zone you expect an entry
- The clearest moves happen at, or after, news releases.
This is the only leading indicator. All others are lagging.
So What News Releases Do I Pay Attention To?
These are the major events/releases. Trade around the times that these come out.
A Word of Caution
This news indicator is by no means an encouragement to trade the news. Yes, you could with a bigger stoploss and smaller size, but you’d have to have experience. These high impact releases can be very volatile. It’s worth waiting a minimum of 15mins after.
The main purpose here is, to know that if you are planning a trade the same week of a big release happening, and you enter before the news day, your probabilities for a large move are reduced. The easier move/entry will come on the day of the news, or the day after. More often then not, you will have more clarity.
Look at this GBP/USD chart across an entire week – Monday to Friday, where we had major news on Wednesday. Study it carefully, day by day.
As you can see, while there was an entry and move on Monday, the market didn’t go far and went into a range in preparation for news volatility. You may have been doubting yourself by Wednesday. Many times, there’s no movement at all. What would you have done then? You’d be stuck…
So waiting for the news to kick in would have given you a far clearer picture. The overall uptrend bias was decided in advance. Now it’s just a case of waiting and seeing if the News Timing gives you an entry price you’re happy with based on your technicals.
If you hesitate on the news hours, the days after are simpler to trade.
To summarise, the key takeaway is:
The news indicator is an opportunity, but only when it aligns with a clear higher timeframe analysis.
Try this news concept and let me know in the comments below what happens.
Happy trading everyone.
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the risk that goes with it.)