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.

Economic News reports often evoke strong moves in the currency market & also Bitcoin market because Bitcoin is traded against the currency USD. These moves create a lot of trade opportunities for trading for the breakout traders who look to trade the short term market moves.

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.

The Economic News Reports from USA will be used to trade when using this News Strategy. The news reports coming From US can be found in the schedule Economic Calendar, This Economic Calendar is provided online by brokers & also other financial services providers - traders can search for this Economic Calendar online.

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.

These Economic News Data Reports are marked in terms of significance, there are three levels of significance & these are: RED, ORANGE and GREEN. The most Significant News Data Report is Marked RED in colour, the least significant ones are marked in GREEN while those data reports marked in ORANGE are in between.

The only economic news reports that Bitcoin traders should focus on when it comes to trading are those that are marked in RED and those marked in color ORANGE. Traders shouldn't trade the GREEN ones.

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 Crypto 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 trade orders.

Interpreting the Economic News Data Reports

BTC/USD CryptoCurrency traders can predict the most likely direction ofBTC/USD Crypto by looking at the News Calendar Fields marked as Forecast and Previous.

These two figures are then compared with the Actual News Data Report that is released to give an idea of the likely next direction of the BTCUSD price move.

Because BTCUSD is traded against the USD - BTCUSD, the only Fundamental Economic News Data Reports which a btc/usd trader will be watching out for are those news reports from the America.

BTCUSD CryptoCurrency traders will watch the news data reports and pay close attention to the Actual news data that is reported - and closely watch the economic numbers.

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.

If the numbers released come as a surprise to the downside of the USD the online traders of BTCUSD will buy Bitcoin (BTCUSD) - when traders buy BTCUSD they will simultaneously be selling USD at the same time.

Traders will also know and analyze when to trade & when not to trade based on if the Actual news reports announced are close to what the forecast was or not.

For these news traders the most important thing to know is that the analysis of the previous news data report, the forecast and the actual news report will be used to figure out whether if to open a Bitcoin trade or not and what direction to open the BTCUSD trade in.

Because most BTCUSD traders will be positioning themselves to trade BTCUSD when these news reports are just about to be announced or shortly after the news data reports have been announced, it means that these news reports will cause a lot of market volatility that will give traders a good opportunity for trading the BTCUSD CryptoCurrency pair. News traders can then learn how to best position themselves and their trades when during these economic news reports by learning more about these 2 news trading techniques & doing some practice on their Bitcoin demo trade practice account.

A Bitcoin news trader will maintain a schedule of all the America economic news reports using the News Calendar. This Economic calendar contains a timetable of the schedule of when the news reports will be released & also the previous news reports and the forecasts of these news reports. These economic calendars will keep this schedule and display it well in advance & this way a btc usd trader will be able to know when there are upcoming economic news reports.

One will keep this schedule before the news are released and also use the same Economic Calendar to get the news info after these reports are released, the economic calendar will also be updated in real-time.

The Economic Calendar is compiled by Financial Analysts and Economist who study the fundamental news data reports & economies of the world. By having this Economic Calendar traders can schedule when to trade this economic info well in advance. To find a copy of the Economic Calendar traders can search online for "Forex Calendar" or "News Calendar" and traders will find a couple of these trading calendars hosted online on different online Bitcoin and Forex broker websites or other online currency trading sites.

About Economic Calendars

An Economic Calendar will normally have 3 values:

Previous Reading Forecast Actual News

Previous Reading - This piece of the information shows the previous value or reading of a previous economic news reports. Most reports are in the form of numeric numbers or percents.

Forecast - Forecast shows the value for the news report that economic experts predict for that specified news data report. This value is fore-casted way before the date of the economic news release. Economic & Economic Analysts will put across their forecast.

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.

If the actual info release is same as the forecast, then there will not be much movement in the prices of Bitcoin, this is because Bitcoin traders anticipated this info and have already transacted the news even before the actual info report was announced.

If the actual news release isn't the same as the forecast, this will come as a surprise to the BTCUSD traders, if the forecast & actual info release is not the same then, the online traders will have to adjust their trades accordingly & this will cause a price reversal in the opposite market direction.

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

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 Crypto Currency because the information is already available to the public and has already been taken in to account.

In order to use the fundamental analysis when analyzing news reports, you should first be able to know the Economic market indicators. Economic calendar containing all the fundamental indicators is developed by economists. Economists also make use of this Economic Calendar to predict different news reports. These predictions are offered by market analysts. This can have great impacts on the market. Bitcoin Traders will watch out for news reports that have a great impact on the financial trading markets & use these reports to adjust their open BTCUSD trades.

When are US economic news reports released?

8:30 am - 10:00 am EST

America Economic News Data Reports are released between 8:30 am - 10:00 am EST, Bitcoin traders can schedule to follow and trade these news reports during this time of the economic news data release.

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