Trading during unexpected news – simple tip

<p>When there is unexpected news we see the reaction from the markets. Airstrikes on Iran can be a good example.</p>
<p>There are a few ways you can trade during days like that. My favorite is to wait for a reversal move from one of pivot lines.</p>
<p>We can observe some panic/stronger moves during the first minutes or even hours.</p>
<p>Eventually, there will be a correction.</p>
<p>That’s why I check monthly pivot lines for a possible reaction from the price. You can go simply with support/resistance zones but I prefer monthly pivots (it can be Pivot line itself or R1, R2, S1, S2…).</p>
<p>Below you can see my trade from Friday. This is AUD/USD. I saw that after a strong selloff price was approaching the monthly pivot line. The entry was on the lower time frame, after confirmation that there is a possible move in other direction (up).</p>
<p><img src="http://marketsurvival.net/wp-content/uploads/2020/01/audusd-4-hour-1024×621.png" alt="audusd-4-hour" width="620" height="376" class="aligncenter size-large wp-image-3809" srcset="http://marketsurvival.net/wp-content/uploads/2020/01/audusd-4-hour-1024×621.png 1024w, http://marketsurvival.net/wp-content/uploads/2020/01/audusd-4-hour-300×182.png 300w, http://marketsurvival.net/wp-content/uploads/2020/01/audusd-4-hour-768×466.png 768w, http://marketsurvival.net/wp-content/uploads/2020/01/audusd-4-hour.png 1030w" sizes="(max-width: 620px) 100vw, 620px" /></p>
<p>The point here is simple. When there is a stronger move because of some news – switch between time frames and observe monthly pivot points. On a higher time frame check how the price is reacting with pivots. On the lower look for an entry signal.</p>
<p>I should mention that I closed that trade on the same day. During days like that, I prefer to close it fast. I don’t want to leave it open, especially before the weekend.</p>