Posted by forex at 3:51 AM
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Find News Events
1. Determine the local time in relation to GMT. Since Forex is a 24-hour market, you need to find the exact local time when certain events are due.
2. Access a Forex news calendar to find news events due while the Asian market is closed.
3. Gather news releases, reports and market analysis of important news events. News events are usually categorized into groups by importance. Forex calendars provide an indicator of importance for news events.
4. Select news that's more likely to affect Asian currencies such as JPY. AUD and NZD are also preferable, since Sydney and Tokyo are open simultaneously, with only a two-hour difference in opening times.
5. Carry out a fundamental analysis based on the news events, reports and results. Outcome of this exercise should provide buy or sell signals for currencies JPY, AUD or NZD paired with the major currency of the country that releases the news. For example, if the news event takes place in the U.S., then the instruments in focus would be USDJPY, AUDUSD and NZDUSD.
Trade the Asian Open
6. Determine the Tokyo open in local time. Tokyo open is at 00:00 hours GMT.
7. Place orders according to the news analysis and reports. If the trading platform allows pending orders, use buy-stop or sell-stop orders.
8. Use one-hour, four-hour or one-day time frames to trade, as smaller time frames may be too noisy at market openings.