After reading this post, you will have a very simple method that will give you the exact time of the breakout taking place on a currency pair. Many pro traders will tell you that it is not possible to predict the time of the breakout. But we have a very simple method that tells you the exact time when the breakout takes place. Have you heard of the Economic News Releases like the NFP Report? If you have then you already know that there are certain Economic News Releases that move the market big time. One of the Economic News Releases that moves the market big time is NFP Report. If you have been reading my posts then you already know how to trade the NFP Report Release with my system.
This is a screenshot of the Forex Factory Economic News Calender. As you can see this Forex Factory Economic News Calender is pretty comprehensive. This is what we do. We daily visit the Forex Factory Economic News Calender. The red is the high impact news. This is the time when the market is expected to move big time. Now if you take a look at the Economic News Release scheduled for 11:00 Pm, you will find a couple of high impact news items like the FOMC Economic Projections and the FOMC Statement. FOMC stands for the Federal Open Market Committee. This is the committee that decides for the FED whether interest rate needs to be lowered or raised.
A lot of expectation had developed in the market about this FOMC Statement. Many pro traders were openly advising that we should all close the open the trades, wait for the FOMC Statement and then reopen after the market settles down. So everyone was expecting the market to move big time and a massive breakout to take place. And this is what precisely happened. We used our system to capture easy 250 pips overnight trading the FOMC Statement.
So you can see you can pretty much predict the time at which the breakout takes place. When you visit the Forex Factory website, you have the option to set the time on the website according to your local computer time. This is precisely what we have done so you can see the FOMC Statement scheduled for 11:00 PM according to our time. Whatever currency pair you are trading, daily open the Forex Factory Economic News Calender and check whether there is any big impact news item scheduled for that pair on that day. It there is a big impact red item scheduled, you can pretty much expect a breakout to take place around that time. Use our divergence based swing trading system on H1 timeframe to trade that breakout.