Trading Bitcoin Using News Strategy

One of the strategies that can be used to trade BTC/USD Crypto that's borrowed from currency trading is the News Trading strategy and for BTC/USD Crypto trading we can call it Bitcoin News Strategy.

Because Bitcoin is traded against the USD, the currency and Bitcoin markets are frequently influenced by the economic headlines. These actions offer numerous trading possibilities for traders who want to trade the short-term market changes.

However, not all the economic reports are tradeable, some economic reports have more impact than others and only those that have a considerable effect on the market price movement of Bitcoin against the USD can be traded using this news strategy.

Use US Economic News Reports for trading with this News Strategy. Find news from the US on the Economic Calendar schedule. Brokers and other financial services offer this calendar online. Traders can search for it easily.

By looking at the Economic Calendar schedule of news reports, traders can find out the significance of the upcoming news reports to figure out whether these news reports are worth trading or not based on the expected volatility of these news reports.

Economic news reports get levels of importance. Three colors mark them: red, orange, and green. Red means most important. Green is least. Orange sits in the middle.

For Bitcoin traders, the economic news to consider while trading are those highlighted in RED and ORANGE. News marked in GREEN should typically be avoided when making trade decisions.

General Approach to News Strategy

There are 2 general approaches that can be used when it comes to BTCSUD news trading.

These 2 methods are:

Trading the Breakout Channel
Interpreting the Economic News Data Reports

Trading the Breakout Channel

BTCUSD traders will set a buy stop order and a sell stop order above and below the Bitcoin price respectively. These orders will be on both sides of the price so that when the Economic News Report is released one of the orders will probably be hit and if price continues moving in that particular direction due to this economic news report then the Bitcoin trader will make short term profits from this move.

However, because of the volatility caused by news reports both these orders may be hit both within a short time period which means that a trader can make a loss in one of the open positions or in some cases both of these orders.

Interpreting the Economic News Data Reports

BTC/USD crypto traders can guess the pair's next move. They check the news calendar for forecast and previous data fields.

Compare these two figures with the Actual News Data Report. That report comes out to predict the next BTCUSD price direction.

When formulating your trading system, the initial step involves defining the operational rules: these established trading rules will subsequently be used to generate actionable trading signals - both for buying and selling.

BTCUSD Cryptocurrency traders maintain a keen focus on incoming economic news reports, paying meticulous attention to the reported actual data and closely monitoring key economic figures.

If the numbers released come as a surprise to the upside of the USD the online traders of BTCUSD will short Bitcoin (BTCUSD) - when traders sell BTCUSD they will simultaneously be buying the USD at the same time.

Should economic data surprise to the downside for the USD, BTCUSD traders may respond by purchasing Bitcoin, effectively selling off USD simultaneously.

Traders will furthermore possess the knowledge to assess optimal trading times versus periods to avoid trading, based on how closely the confirmed news releases align with prior forecasts.

For individuals trading based on major news events, critical information involves analyzing the preceding data report, the market forecast, and the actual published news figure to determine the decision - and the direction - for opening a Bitcoin trade (BTCUSD).

Since the majority of BTCUSD traders position themselves just before or immediately after major news reports are released, these announcements are guaranteed to induce significant market volatility, presenting lucrative trading prospects for the BTCUSD CryptoCurrency pair. News traders can learn the optimal ways to position themselves and their trades during these economic announcements by studying these two news trading techniques and gaining practical experience on their Bitcoin demo trading account.

A person who trades based on Bitcoin news keeps track of all the American economic news using a special calendar. This calendar shows when the news will come out, what happened before, and what people expect to happen. These calendars keep this schedule and show it ahead of time, so a trader can know when important economic news is coming.

Traders often rely on economic calendars both before and after news is released to monitor updates. These calendars provide real-time information on economic reports and help integrate fresh data seamlessly during trading sessions.

The Economic Calendar is created by financial analysts and economists who study fundamental news data reports and the global economy. By using this calendar, traders can schedule their trades around important economic information in advance. To find a copy of the Economic Calendar, traders can search online for "Forex Calendar" or "News Calendar." Many trading calendars are available on various online bitcoin and forex broker websites or other currency trading sites.

About Economic Calendars

An Economic Data Calendar will normally have 3 values:

Previous Reading Forecast Actual News

Previous Reading - This section displays the recorded value or reading from a preceding economic news release. Most reports are quantified using numerical figures or percentages.

Forecast - This is what experts think the news report will say about the specified economic data. The forecast is made well before the economic news is released, with predictions from economists and analysts.

If the forecast number is better than the previous for USD, traders sell BTCUSD
If the forecast number is worse than the previous for USD, traders will buy BTCUSD

Actual News Data Report

This is what will determine if there'll be a big price movement or none at all.

Because Bitcoin traders anticipated this information and have already traded the news even before the real info release, the price of Bitcoin won't change much if the actual info release matches the forecast.

When the actual news release differs from the forecasted figures, it can catch BTCUSD traders off guard. If the actual data does not align with the predictions, online traders must modify their trades accordingly, leading to a potential price shift in the opposite direction of the market.

If the real info and value is much better than what people thought, then the Bitcoin price will keep moving in the same way and get even stronger. Also, if the actual news report is worse than what was expected, the price will still go in the same direction as before, but it will speed up and move even further that way.

Example:When the news information is announced then it has impact on the market only if it is different than expected. If the info is as expected then it has no impact in Bitcoin Currency because the information is already available to the public and has already been taken in to account.

To effectively employ fundamental analysis when interpreting news reports, one must first be proficient in identifying key Economic market indicators. An Economic data calendar, comprising all necessary economic indicators, is compiled by economists. These same economists also utilize this Economic Data Calendar to forecast the outcomes of various news reports. These projections are subsequently disseminated by market analysts and can substantially influence market movements. Bitcoin Traders will pay close attention to news articles exhibiting significant consequences for financial trading markets and utilize this information to adjust their existing BTCUSD positions.

When are US economic news reports released?

8:30 am - 10:00 am EST

American Economic News Data reports are made public between 8:30 am and 10:00 am EST: Bitcoin traders are advised to structure their schedules to monitor and trade based on these reports during this window of economic data release.

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