Key Takeaways
News-Based Scalping
Capitalizes on the volatility spike immediately after high-impact news releases by trading the initial momentum or the reversal that follows.
Market Psychology
News releases create temporary inefficiencies as the market digests new information. Scalpers exploit the emotional overreaction and subsequent correction.
šStrategy Visualization
Volatility spike, then enter second wave
In-Depth Strategy Guide
News trading requires understanding the economic calendar and which events impact which currency pairs. High-impact events like NFP, FOMC, and CPI create 50-200 pip moves in seconds.
Never enter during the initial spike - spreads widen dramatically (sometimes 20+ pips) and slippage is severe. Wait 30-90 seconds for spreads to normalize and the fake move to complete.
The second wave move after the initial reaction is often more tradeable. This occurs when traders who waited for confirmation enter, adding momentum in the true direction.
šRecommended Python Libraries
Related Indicators
š„ Entry Rules
Mark key levels 30 minutes before news
Wait for initial spike to complete (30-60 seconds)
Look for reversal pattern or continuation breakout
Enter with momentum after spread normalizes
š¤ Exit Rules
Quick 10-30 pip targets depending on event impact
Exit before next news event
Use time-based exit (close within 15 minutes)
Trail stop aggressively after initial profit
š”ļø Risk Management
Spread Warning
Spreads can widen 10-20x during news. Never enter until spread normalizes
Slippage Awareness
Use market orders with slippage protection on
Event Filtering
Only trade high-impact events (NFP, FOMC, GDP, CPI)
Indicators Used
Economic Calendar
Track high-impact news releases
Pre-news S/R
Mark key levels before the event
Spread Monitor
Watch for spread widening during news
Best Timeframes
Best Market Conditions
Common Mistakes to Avoid
Pro Tips
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
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