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Types of Stock Indexes News Analysis

What Are the Different Types of Stock Indexes News Trading Strategies?

Stock Indexes News Trading - indices economic news reports released often evoke strong indices market moves thus creating a lot of short term indices trading opportunities for breakout indices news traders.


However, not all indices news reports are tradable. Some of the indices news reports have a significant effect on the indices market while other indices news reports do not have any effect. By looking at the indices calendar - indices news traders can find out the significance of the upcoming indices news reports, find out whether the economic indices news report is worth trading or not.


The different indices news reports are marked in terms of significance. There are three levels of significance: RED, ORANGE, GREEN. The most significant indices news reports are marked in red; the least significant are marked in green, while those marked in orange are in between.


There are two general analysis methods to trade indices news: Stock Indexes News Trading Analysis Methods


Trading the indices breakout channel

Stock Indexes News Traders simply set Buy and Sell pending stop stock indices orders on both sides of a indices price channel, so when the indices news data comes out one of the pending stock indices orders will probably be hit. Although this indices news trading method is very simple, it also carries real risks of potentially hitting two orders of Buy and Sell as the stock indexes trading market is shaken by the indices news report and there is stock indexes price volatility. In such a double hit situation indices news traders will make a loss on one of the indices trade or sometimes even both of the stock indexes trades.


By analyzing the indices news report

Stock Indexes News Traders can predict most likely outcome of the indices news by analyzing the indices calendar fields labeled as Forecast and Previous. These figures are then compared with the indices news data reports released to give an idea about the current economic situation.


Stock Indexes News Traders watch the indices news report and pay attention to the actual numbers of the indices news report released. If the indices news report numbers come as a surprise meaning the indices news reports are not close to what was forecasted or expected, then indices news analysts opening indices trading position according to the indices news reports. If the indices news report released is better than expected then indices news traders open Buy Long positions. If the indices news reports released are not favorable - indices news traders open Sell Short positions.


The most important thing you have to know about indices news analysis is the stock indexes trading market expectation of an economic indices news indicator. Economic analysts provide a prediction of a probable number of the economic indices news indicator to be announced. This has an impact to the indices market and indices news traders are positioned accordingly. When the economic indices news indicator is announced it affects the indices market only when the indices news report is different from what the indices market expected. That happens because every data of the indices news report available to the public information is already taken into account when trading.


Example of Stock Indexes News Trading Analysis

The best indices news trading analysis strategy, is one that is based on the indices calendar to time when the indices news release are to happen so as to trade these indices economic data reports. A indices news trader will keep a schedule of these indices report news release times and prepare how to indices trade the data before and after the indices news data report is released.


A indices news trader can get the specific times of when indices news data reports are to be released by observing a indices calendar. The indices calendar contains the time table of when indices news data reports are bound to be released. The indices calendar is compiled by Financial Analysts and Economist who study the indices news reports and economies of the world. This Indices Economic Calendar will show the timetable for all the indices news releases scheduled for the next 30 days.


By having this indices calendar a Stock Indexes News Trader can schedule when to trade these indices news reports well in advance. To obtain a copy of this indices calendar a indices news trader can search for "Stock Indexes Calendar" and you will find a couple of these indices trading calendars online hosted on various online indices trading websites.


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An Economic Stock Indexes Calendar will normally have three readings:


  1. Previous Reading


  2. Forecast Reading

  3. Actual News Report


Previous Reading - This piece of the indices news data shows the previous value or reading of a previous indices news reports. Most indices news reports are in the form of numeric numbers or percentages.


Forecast Reading- Forecast shows the value for the indices news that economic experts predict for that particular indices news report. This value is forecasted way before the date of the economic indices news data release. Economic Analysts and Financial Analysts will put across their forecast.


  • If the forecast number is better than previous reading, Stock Indexes News Traders will place a buy indices trade associated with the good forecast

  • If the forecast indices news report number is worse than previous reading, Stock Indexes News Traders will place a sell indices trade associated with the bad forecast


Actual Stock Indexes News Release

This is what will determine if there will be a large stock indexes price movement or no stock indexes price movement at all.

If the actual indices news data release is same to the forecast, then there will not be a lot of movement, this is because indices 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 indices news traders, if the forecast predicted and actual indices news data release is not the same then, the indices news traders will have to adjust their stock indexes trades according to the news report released and this will cause a indices price reversal in the opposite direction.


If likewise the actual indices news data report was way better than expected, then the stock indexes price will continue moving towards its direction and the stock indexes price will gain more momentum towards that direction. Likewise if the actual indices news report is worse than the forecast predicted, stock indexes price movement will also continue in the same direction as that of before the indices news report release and this time gain further momentum and move further towards that direction.


Example - Stock Indexes News Trading Example:

When the new indices news information is announced then it has impact on the stock indexes trading market only if it is different than expected forecast. If the indices news data information is as expected then it has no impact on a indices price movement because the information is already available to the public and it has already been taken into account when trading the stock indexes market.


In order to use indices news analysis, indices news traders should first learn and know economic indices indicators - indices economic indicators. Stock Indexes Calendar containing all the fundamental stock indexes indicators is created by economists. Economists also use this Economic indices calendar to predict different indices news reports. These indices news reports predictions are provided by market analysts. These indices news reports can have great impacts on the stock indexes market. Indices news traders will watch out for indices news announcements that have a great impact on the stock indexes price market moves.


When are indices news reports released? Types of Stock Indexes News Analysis

Types of Stock Indexes News Trading Strategies

Types of Stock Indexes News Analysis - Different Types of Stock Indexes News Analysis - Types of Stock Indexes News Trading Strategies - What Are the Different Types of Stock Indexes News Trading Strategies?

 

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