The news indicator is discussed around 4 minutes, 40 seconds.
Here’s a riddle…what can suddenly and drastically change the movement of price across any market, can be planned for, yet most traders ignore? NEWS EVENTS. That’s right – if you haven’t already done so, Google the Bloomberg Economic News Calendar and see how those red star events match up with volatile periods on any chart. As price action traders, we have to be aware of these events in advance. The best way to do this is with Day Trade to Win’s news indicator for NinjaTrader.
We’ve tested the news indicator a bit and found the news data to be dead-on. It hasn’t missed any of the events on the Bloomberg calendar. You can also customize the display to show US-only items. We noticed changing the alignment was not possible, so we recommend adding it to a secondary chart, shrinking the chart and using it as an overlay (see the picture). Here in the price action office, you probably won’t see a chart without this indicator.
There are also announcements from Day Trade to Win at the top, but this is easily ignored. We’re thankful to have it!
We were very fortunate to find Day Trade to Win’s instructional video for trading news events. In under seven minutes, John Paul, DTTW founder and day trading coach, outlines a specific price action strategy you can use to take advantage of price right after a news event occurs. You’ll quickly understand the method and be able to apply it to your preferred charting software almost immediately. Always consult Bloomberg’s Economic calendar first – check for red star events. These red stars indicate market-moving news, usually related to U.S. financial reports and economic outlooks (jobs, growth, real-estate, etc.). If you’re using NinjaTrader, pull up the latest day with a news event and see how the strategy worked. It won’t work 100% of the time (no strategy ever does), but we’ve seen a very high rate of success overall.
This is the type of price action trading that Day Trade to Win teaches – raw, uncut and explained in simple terms. This week (the first of January, 2012), there’s a brand new Group Mentorship session where you can register to learn a host of price action strategies. Traders learn how to quickly adapt to any market’s price action, manage risk and quickly switch between strategies depending on what price is proving. Visit the Private Mentorship registration page to find out what all the talk is about.