More traders blow accounts during news releases than any other time.
50-200 point instant moves, stop losses blown through, spreads widening 10x. This tutorial could save you from disaster.
1. Understanding News Impact
Economic news releases create violent price movements that can instantly wipe out your position—or create massive opportunities if you know what to do.
The 3 Impact Levels
| Impact | Movement | Duration | Action Required | Examples |
|---|---|---|---|---|
| Low | 5-15 points | 5-10 minutes | Can trade through | Building permits, consumer sentiment |
| Medium | 20-50 points | 15-30 minutes | Close or hedge | Retail sales, housing data, PMI |
| High | 50-200+ points | 1-3 hours | CLOSE ALL | NFP, CPI, FOMC, GDP |
What Happens During News
The 60-Second Chaos
Typical sequence during major news (e.g., NFP):
- 08:30:00: News released
- 08:30:01: Algorithms react instantly
- 08:30:05: 50-point spike in one direction
- 08:30:10: Complete reversal, 80-point move opposite
- 08:30:30: Whipsaw back and forth
- 08:31:00: Direction settles, trend begins
What this means for you:
- ❌ Stop losses hit in milliseconds
- ❌ Spreads widen from 2 to 20+ points
- ❌ Slippage 10-30 points common
- ❌ Take profits ignored (price gaps through)
- ❌ Can't exit manually (orders queued)
Example: Gold during NFP
- Normal spread: 2-3 points ($0.20-0.30 per 0.01 lot)
- During news: 15-25 points ($1.50-2.50 per 0.01 lot)
- Your $50 stop becomes $150+ loss due to slippage
This is why professionals NEVER hold through news.
2. Economic Calendar Guide
Know when news is coming and plan accordingly. Here are the events that matter most.
High-Impact Events (MUST AVOID)
| Event | Frequency | Time (EST) | Avg Movement | Action |
|---|---|---|---|---|
| Non-Farm Payrolls (NFP) | Monthly (1st Fri) | 8:30 AM | 100-200 pts | Close 15 min before |
| CPI (Inflation) | Monthly | 8:30 AM | 80-150 pts | Close 15 min before |
| FOMC Rate Decision | 8x per year | 2:00 PM | 100-300 pts | Close 30 min before |
| FOMC Press Conference | 8x per year | 2:30 PM | 80-200 pts | Stay closed |
| GDP | Quarterly | 8:30 AM | 50-100 pts | Close 15 min before |
| Unemployment Rate | Monthly (1st Fri) | 8:30 AM | 40-80 pts | Close 15 min before |
Medium-Impact Events (CAUTION)
| Event | Frequency | Time (EST) | Avg Movement |
|---|---|---|---|
| Retail Sales | Monthly | 8:30 AM | 30-60 pts |
| PMI (Manufacturing) | Monthly | 9:45 AM | 20-40 pts |
| Consumer Confidence | Monthly | 10:00 AM | 15-30 pts |
| PPI (Producer Prices) | Monthly | 8:30 AM | 25-50 pts |
Where to Find News
Recommended Economic Calendars
- Investing.com Calendar - Best filtering options
- ForexFactory Calendar - Most popular, color-coded impact
- TradingView Economic Calendar - Integrated with charts
- Myfxbook Calendar - Shows expected vs actual clearly
Daily routine:
- Check calendar every morning before trading
- Set phone alerts for high-impact events
- Plan your trading hours around news
3. Pre-News Protection Protocol
This systematic approach will protect you from 99% of news-related disasters.
The 4-Step Protection System
Step 1: Morning News Check (Every Day)
Before opening any trades:
- Open economic calendar
- Filter for "High Impact" events only
- Note times of all high-impact releases today
- Set alerts 20 minutes before each event
Takes 2 minutes, saves your account.
Step 2: Position Closure Timeline
For high-impact events:
- -30 minutes: Stop opening new trades
- -15 minutes: Close 50% of open positions
- -10 minutes: Close remaining 50%
- -5 minutes: Verify all positions FLAT
- News release: Watch from sidelines
- +15 minutes: Wait for dust to settle
- +30 minutes: Can resume trading if setup clear
Step 3: Emergency Checklist
If you forgot and news is in 5 minutes:
- DON'T PANIC - You have time
- Close ALL positions immediately at market
- Accept small loss better than disaster
- Don't try to "ride it out"
- Set reminder to check calendar tomorrow
Step 4: The Exception Rule
Only hold through news if ALL these conditions met:
- ✅ Position in significant profit (+30+ points)
- ✅ Stop loss moved to breakeven +10
- ✅ You can afford to lose the gain
- ✅ You're at your computer to monitor
- ✅ Event is MEDIUM impact (not high)
Even then, consider closing. Not worth the risk.
4. Post-News Trading Strategy
The chaos after news creates some of the BEST trading opportunities—if you wait for the right moment.
The 3 Phases of Post-News Price Action
Phase 1: The Spike (0-5 minutes)
Characteristics:
- Violent move in one direction
- Often 50-150 points in seconds
- Spreads 5-10x normal
- Extreme volatility
Action: ❌ DO NOT TRADE
Impossible to predict, spreads eat you alive, high risk of reversal.
Phase 2: The Whipsaw (5-20 minutes)
Characteristics:
- Price oscillates wildly
- False breakouts
- Traders getting trapped both ways
- Volume still extremely high
Action: ⚠️ CAUTION - Only if very experienced
Can catch reversals but requires lightning-fast execution and steel nerves.
Phase 3: The Trend (20+ minutes) - GOLDMINE
Characteristics:
- Direction becomes clear
- Spreads normalize
- Higher highs or lower lows forming
- Volume settling but still elevated
Action: ✅ THIS IS YOUR ENTRY WINDOW
Wait for GAIN OPTIMIZER signal that confirms the post-news trend.
The Post-News Entry Strategy
Wait 20-30 minutes after news, then:
- Check higher timeframes: H1/H4 for direction
- Wait for GAIN OPTIMIZER signal: Let indicator confirm trend
- Verify conditions:
- ADX rising (momentum building)
- Clear trend direction established
- Confluence score 5+ / 7
- Spreads back to normal (check with broker)
- Enter conservatively:
- Use 0.5% risk (half normal size)
- Wider stop (1.5x normal)
- Target 2:1 minimum
Post-News Trade Example
Scenario: NFP Release December 6, 2025
Event details:
- Time: 8:30 AM EST
- Expected: +180K jobs
- Actual: +240K jobs (STRONG)
- USD strengthens, Gold drops
Timeline:
- 8:15 AM: Closed all positions
- 8:30 AM: News hits, Gold spikes from 2650 to 2680 (false move)
- 8:31 AM: Reverses violently, drops to 2620 (-60 points)
- 8:32-8:45 AM: Whipsaw between 2615-2635
- 8:50 AM: Clear downtrend emerges, 2625 level
- 8:55 AM: GAIN OPTIMIZER SELL signal appears
- M15 chart
- Confluence: 6/7
- ADX: 31 (strong trend developing)
- H1 confirms bearish
- 8:56 AM: ENTRY at 2623
- Stop: 2633 (10 points = $100 risk at 0.01 lot)
- Target: 2603 (20 points = $200 profit = 2:1)
- 10:15 AM: Target hit at 2603
Result: +$200 profit, 2:1 R:R, no stress
5. Major Events Breakdown
Let's detail the most important events you'll encounter.
Non-Farm Payrolls (NFP)
The King of Market Movers
What it measures: US job creation (excluding farms)
Why it matters: Employment = economy health = Fed policy
When: First Friday of every month, 8:30 AM EST
Typical reactions:
- Strong NFP (above expectations):
- USD strengthens
- Gold drops 80-150 points
- Stock indices rise
- Weak NFP (below expectations):
- USD weakens
- Gold rises 80-150 points
- Stock indices may drop
Strategy:
- Close ALL positions by 8:15 AM
- Wait until 9:00 AM minimum
- Look for continuation trades 9:15-10:00 AM
CPI (Consumer Price Index)
Inflation Thermometer
What it measures: Price changes for consumer goods
Why it matters: Fed's #1 target, directly impacts rate decisions
When: Mid-month, 8:30 AM EST
Typical reactions:
- High CPI (inflation rising):
- Fed may raise rates
- Gold can move either way (complex)
- USD often strengthens
- Low CPI (inflation cooling):
- Fed may cut rates
- Gold often rises
- USD may weaken
Gold's complex reaction:
- High inflation = good for gold (inflation hedge)
- BUT high inflation = Fed raises rates = bad for gold
- Result: Initial spike, then reversal common
FOMC Rate Decision
The Fed Speaks
What it is: Federal Reserve interest rate announcement
Why it matters: Sets cost of borrowing, impacts everything
When: 8 times per year, 2:00 PM EST
Typical reactions:
- Rate hike: USD up, Gold down 100-300 points
- Rate cut: USD down, Gold up 100-300 points
- No change but hawkish: Moderate USD strength
- No change but dovish: Moderate USD weakness
The double whammy:
- 2:00 PM: Rate decision (big move)
- 2:30 PM: Press conference starts (another big move)
- Stay out until 3:30 PM minimum
6. The Golden News Rules
Follow these rules religiously and you'll never blow an account on news.
The 10 Commandments of News Trading
- Check calendar EVERY morning - No exceptions, make it routine
- Close positions 15 minutes before high-impact news - Set timer, don't forget
- Never trade during the first 20 minutes post-news - Let chaos settle first
- Reduce position size by 50% on first post-news trade - Conservative approach
- Verify spreads normalized before entering - Check with broker if unsure
- Wait for GAIN OPTIMIZER confirmation - Don't guess direction
- Use wider stops post-news - 1.5x normal, volatility still elevated
- Avoid Fridays during NFP week - Risk too high, take the day off
- Never hold through FOMC - Even if winning big, close it
- When in doubt, stay out - Missing opportunity > blowing account
Monthly News Schedule Template
Typical Month (US Events)
| Week | Event | Date Pattern | Action |
|---|---|---|---|
| 1st Friday | NFP + Unemployment | First Friday | Close by 8:15 AM, resume 9:15 AM |
| 2nd Week | CPI | Around 12th-15th | Close by 8:15 AM, resume 9:00 AM |
| 3rd Week | Retail Sales | Around 15th-18th | Cautious, can trade with tight stops |
| Every 6 weeks | FOMC | Check schedule | Close by 1:45 PM, resume next day |
What You've Learned
- ✅ Check economic calendar every morning
- ✅ Close positions 15 minutes before high-impact news
- ✅ Never trade first 20 minutes post-news
- ✅ NFP, CPI, FOMC = MUST close
- ✅ Post-news trends offer great opportunities
- ✅ Wait for GAIN OPTIMIZER confirmation
- ✅ Use 50% position size on first post-news trade
- ✅ When in doubt, stay out
- Set up calendar: Add investing.com or forexfactory to bookmarks
- Create alerts: Set phone reminders for major events
- Practice closing: Next news event, close positions early
- Track one post-news trade: Follow the 20-minute rule