What if there was a method to make money quickly regardless of whether the market was going up or down?
It is possible if there is enough price volatility.
And when will this volatility be available? When economic data or central bank announcements are made!
The first consideration is which news stories to trade. We previously covered the most significant breaking news stories. Ideally, you should only trade those reports because there is a high likelihood that the market will move significantly after they are released.
The next step is to glance at the range at least 20 minutes before the actual news release.
The range’s high will be your higher breakout point, and the range’s low will be your lower breakout point.
It is important to note that the smaller the range, the more likely you will see a large move from the news story.
Your entry levels will be the breakout spots.
This is where you should place your purchases. Stops should be set approximately 20 pips below and above the breakout points, and initial targets should be within the range of the breakout levels.
This is referred to as a straddle trade.
You intend to exploit BOTH sides of the trade.
It makes no difference which way the price moves; the straddle plan will position you to profit from it.
All you have to do now that you’re ready to enter the market in either way is wait for the news.
In either case, if done correctly, you should finish up with a positive day total.