Forex Trading Based on Non-Directional Bias
The first thing you do is determine which news of economic fundamentals can give a big influence on the movement of the currency pair. And ideally you will only choose news like this because it will provide a great opportunity and can drive the market to move in a large range.
Then the thing you need to do is analyze the price movements 20 minutes before the right economic fundamentals will be released. The highest price will be the upper breakout point and the lowest price will be the lower breakout point. The thing to note is that the smaller the range that is formed, there will be a high probability of price movements in a large range (very volatile ).
And this breakout point will then become your entry level. Then you need to set Stop Loss to the position of 20 pips (it’s up to you to determine this value actually) above or below the breakout point. And the amount of Profit Level you can set yourself but you can also set profit targets as large as the ranging value that occurs.
The thing to keep in mind that when you trade forex using this strategy then you are actually trading for two sides namely the possibility of bearish and bullish . And the most important thing here is that you are trading based on the fundamental economic news that is able to move the market to be quite volatile and you are when the news is released.
Now all you have to do is wait and see your transaction working (both directions at once). Now sometimes one of your trading positions will be touched (profit level) and the other position will be closed after the stop loss level is touched. And when you use forex trading with a strategy like this then the possibility of getting a profit will be less than the directional bias but the possibility of getting a loss will also be less.
So a forex strategy like this has a principle when one position (open position) is touched then it automatically closes the other position. And the two trading positions opened earlier are two opposite things (Short and Long).