News trading can be highly profitable when approached systematically. This simple strategy focuses on trading major currency pairs 15-30 minutes after high-impact news releases, using TradingView for chart analysis and Pepperstone for optimal execution during volatile conditions.
The Post-News Retracement Strategy
After a news release, prices often make an initial spike followed by a retracement. We capitalize on this by waiting for the pullback to complete before entering in the original news direction. This approach avoids the initial chaotic volatility while still capturing the dominant trend.
- Step 1: Identify upcoming high-impact news using an economic calendar (focus on events marked red)
- Step 2: 15 minutes pre-news, note key support/resistance levels on EUR/USD or GBP/USD 15-minute charts
- Step 3: After news hits, wait for the initial 50-100 pip spike and subsequent 30-50% retracement
- Step 4: Enter on a 5-minute candle close in the original news direction with stop below retracement low
- Step 5: Target 1.5x risk (Example: 30 pip stop → 45 pip take profit)
- Step 6: Close half position at TP1 and trail stop on remainder
Example Trade:
NFP release causes USD/JPY to spike 80 pips up, then retraces 35 pips. Entry on bullish 5-min candle at 112.50, stop at 112.15 (35 pips), first TP at 112.95 (45 pips).
Forex News Trading FAQs
How long after the news should you wait to trade?
Ideal entry window is 15-30 minutes post-release when volatility stabilizes
What are the best currency pairs for news trading beginners?
EUR/USD and USD/JPY offer the most predictable news reactions
How to set proper stop loss for news trades
Place stops beyond the retracement extreme plus 5-10 pip buffer
Why trade the retracement instead of initial spike
Retracements offer better risk/reward with confirmed direction
What are the most reliable news events for this strategy?
NFP, CPI, Central Bank Rate Decisions create cleanest patterns
How to avoid fakeouts during news volatility
Wait for price to reclaim the 15-period EMA on 5-minute chart
Final Thoughts
This straightforward news trading strategy helps traders avoid the pitfalls of chasing initial spikes while still capitalizing on post-news momentum. Using TradingView‘s charting tools to identify key levels combined with Pepperstone‘s reliable execution (or IC Markets for raw spreads) creates ideal trading conditions.
Remember that consistent news trading requires discipline – always wait for your setup and never risk more than 1-2% per trade. With practice, this approach can help turn volatile news events into calculated trading opportunities.
Elias Stroud is a professional forex trader and market analyst with over eight years of experience. His journey began with the common misconception that trading was a get-rich-quick scheme, a path that led to significant early losses. It was this initial failure that forced a pivot towards disciplined, long-term learning and strategy development.
Today, Elias specializes in price action analysis, focusing on identifying high-probability setups without relying on complex indicators. He has cultivated a premium-level trading account, a direct result of his commitment to a structured and professional approach to the markets. Elias is passionate about sharing the actionable insights and foundational principles that helped him transform from a novice to a consistently profitable trader.
For further verification of his professional standing and live trading credentials, please visit the “About Us” page where account confirmation screenshots are provided, along with links to his trusted broker, Pepperstone, and his primary charting platform, TradingView.
