📰 News & Market Conditions

Why News Is Important in Trading

News moves the market. Big institutions and banks react to economic news, which creates strong price movements. That is why every trader should always check the news before trading.

---

How to get News Data

Go to forexfactory.com and open the calendar. There you will see many news events with different colors: grey, yellow, orange, and red.

• Grey = very low impact

• Yellow = low impact

• Orange = medium impact

• Red = high impact – the most important

The red folder news is the most important because it moves the price the most.

---

Good & Bad Market Conditions

Good market conditions are when:

• There is no important news coming soon

• Market volume is normal

• Price moves smoothly

Bad market conditions are when:

• A red folder news is about to be released

• There is a bank holiday (low volume, unstable price)

• The market is very slow or extremely volatile

Remember: Sometimes not trading is trading.

---

How News Affects Your Trading

If you are a scalper

• If a red folder news is coming:

  • Close your position before the news

  • Do not enter new trades 5 minutes before the news

  • If ChartGuide gives a signal during this time, ignore it

• Reason: price becomes very fast and unpredictable

If you are a swing trader

• Red news is usually not a big problem

• Short-term spikes normally do not affect your long-term trade

---

News vs Trading Pair

Always check news for the currencies you trade:

• Trading XAUUSD or BTCUSD → USD news affects your trade

• Trading EURUSD → EUR + USD news affect your trade

• Trading GBPJPY → GBP + JPY news affect your trade

---

Bank Holidays

On ForexFactory you can also see bank holidays.

On these days:

• Big banks are closed

• Volume is low

• Price becomes unreliable

👉 Avoid trading on bank holidays.