The first thing to consider is which news reports to trade. Earlier in this lesson we discussed the biggest moving news releases. Ideally you would want to only trade those reports because there is a high probability the market will make a big move after their release.
The next thing you should do is take a look at the range at least 20 minutes before the actual news release. The high of that range will be your upper breakout point, and the low of that range will be your lower breakout point. Note that the smaller the range is the more likely it is you will see a big move from the news report.
The breakout points will be your entry levels. This is where you want to set your orders. Your stops should be placed approximately 20 pips below and above the breakout points, and your initial targets should be about the same as the range of the breakout levels.
Straddle Trade
This is known as a straddle trade – you are looking to play BOTH sides of the trades, whichever trade it moves.
Read more: http://www.babypips.com/school/undergraduate/freshman-year/trading-the-news/letting-the-market-decide-which-direction-to-take.html#ixzz3hpqCzBWq
