Different Types of Gold News Analysis
What Are the Different Types of XAUUSD News Trading Strategies?
XAUUSD News Trading - gold economic news reports released often evoke strong gold market moves thus creating a lot of short term gold trading opportunities for breakout gold news traders.
However, not all gold news reports are tradable. Some of the gold news reports have a significant effect on the gold market while other gold news reports do not have any effect. By looking at the gold calendar - gold news traders can find out the significance of the upcoming gold news reports, find out whether the economic gold news report is worth trading or not.
The different gold news reports are marked in terms of significance. There are three levels of significance: RED, ORANGE, GREEN. The most significant gold news reports are marked in red: the least significant are marked in green, while those marked in orange are in between.
There are 2 general analysis techniques to trade xauusd news: XAUUSD News Trading Analysis Methods
Trading the gold breakout channel
XAUUSD News Traders simply set Buy & Sell pending stop orders on both sides of a xauusd price channel, so when the gold news data comes out one of the pending orders will probably be hit. Although this gold news trading method is very simple, it also carries real risks of potentially hitting two orders of Buy & Sell as the xauusd market is shaken by the gold news report and there is xauusd market price volatility. In such a double hit situation gold news traders will make a loss on one of the gold trade or sometimes even both of the xauusd trades.
By analyzing the gold news report
XAUUSD News Traders can predict most likely outcome of the gold news by analyzing the gold calendar fields labeled as Forecast and Previous. These figures are then compared with the gold news data reports released to give an idea about the current economic situation.
XAUUSD News Traders watch the gold news report and pay attention to the actual numbers of the gold news report released. If the gold news report numbers come as a surprise meaning the gold news reports are not close to what was forecasted or expected, then gold news analysts opening gold trading position according to the gold news reports. If the gold news report released is better than expected then gold news traders open Buy Long positions. If the gold news reports released are not favorable - gold news traders open Sell Short positions.
The most important thing you have to know about gold news analysis is the xauusd market expectation of an economic gold news indicator. Economic analysts provide a prediction of a probable number of the economic gold news indicator to be announced. This has an impact to the gold market and gold news traders are positioned accordingly. When the economic gold news indicator is announced it affects the gold market only when the gold news report is different from what the gold market expected. That happens because every data of the gold news report available to the public information is already taken into account when trading.
Different Types of XAUUSD News Analysis
The best gold news trading analysis strategy, is one that is based on the gold calendar to time when the gold news release are to happen so as to trade these gold economic data reports. A gold news trader will keep a schedule of these gold report news release times and prepare how to gold trade the data before & after the gold news data report is released.
A gold news trader can get the specific times of when gold news data reports are to be released by observing a gold calendar. The gold calendar contains the time table of when gold news data reports are bound to be released. The gold calendar is compiled by Financial Analysts and Economist who study the gold news reports and economies of the world. This Gold Economic Calendar will show the timetable for all the gold news releases scheduled for the next 30 days.
By having this gold calendar a XAUUSD News Trader can schedule when to trade these gold news reports well in advance. To obtain a copy of this gold calendar a gold news trader can search for "XAUUSD Calendar" and you will find a couple of these gold trading calendars online hosted on various online gold web sites.
An Economic XAUUSD Calendar will normally have three readings:
- Previous Reading
- Forecast Reading
- Actual News Report
Previous Reading - This piece of the gold news data shows the previous value or reading of a previous gold news reports. Most gold news reports are in the form of numeric numbers or percentages.
Forecast Reading - Forecast shows the value for the gold news that economic experts predict for that particular gold news report. This value is forecasted way before the date of the economic gold news data release. Economic Analysts and Financial Analysts will put across their forecast.
- If the forecast number is better than previous reading, XAUUSD News Traders will place a buy gold trade associated with the good forecast
- If the forecast gold news report number is worse than previous reading, XAUUSD News Traders will place a sell gold trade associated with bad forecast
Actual XAUUSD News Release
This is what will determine if there will be a large xauusd price movement or no xauusd price movement at all.
If the actual gold news data release is same to the forecast, then there will not be a lot of movement, this is because gold news traders anticipated this data and have already traded the news even before the actual economic report was released.
If the actual news release is not the same as the forecast predicted, this will come as a surprise to the gold news traders, if the forecast predicted and actual gold news data release is not the same then, the gold news traders will have to adjust their xauusd trades according to the news report released and this will cause a xauusd price reversal in the opposite direction.
If likewise the actual gold news data report was way better than expected, then the xauusd price will continue moving towards its direction and the xauusd price will gain more momentum towards that direction. Likewise if the actual gold news report is worse than the forecast predicted, xauusd price movement will also continue in the same direction as that of before the gold news report release and this time gain further momentum and move further towards that direction.
Examples - Gold News Trading Example:
When the new gold news information is announced then it has impact on the xauusd market only if it is different than expected forecast. If the gold news data information is as expected then it has no impact on a xauusd price movement because the information is already available to the public and it has already been taken into account when trading the xauusd trading market.
In order to use gold news analysis, gold news traders should first learn and know economic gold indicators - gold economic indicators. XAUUSD Calendar containing all the fundamental xauusd indicators is created by economists. Economists also use this Economic gold calendar to predict different gold news reports. These gold news reports predictions are provided by market analysts. These gold news reports can have great impacts on the gold trading market. Gold news traders will watch out for gold news announcements that have a great impact on the xauusd price market moves.
When are gold news reports released? - Types of XAUUSD News Analysis
Different Types of XAUUSD News Analysis - Gold News Forex Strategy - What Are the Different Types of XAUUSD News Trading Strategies?
