Trade The Scheduled Existing Home Sales News


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By Darrell Martin

Scheduled news events can be looked at as opportunities for traders. Traders react to the actual information in the news creating momentum and volume in the market, and the news is set for a specific time. If the markets show a consistency in movement to the scheduled news over a number of releases, then strategies can be planned for trading the event.

Wednesday, February 22, at 10:00 AM ET, US Existing Home Sales news will be released. Based on 12 - 24 past releases, it was found that an Iron Condor strategy, trading EUR/USD spreads, going for a combined profit potential of $30 or more, made for a high probability trade.

Two spreads are needed for this strategy. One is sold above the market, but with its floor where the market is trading at the time. The other spread is bought below the market with the ceiling where the market is trading at the time. Each spread should have a profit potential of $15 or more.

Any trader can easily find the right spreads for this trade using the spread scanner. Simply open and log in to a demo or live Nadex account and open the Apex spread scanner. Select EUR/USD using the filters on the scanner. The trade can be entered as early as 9:00 AM ET for 11:00 AM ET expirations. The browser based spread scanner will populate with all EUR/USD spreads and show the current risk reward for each one when selling or buying. Look for the minimum profit potential for each spread. Then, verify the ceiling floor parameters and click the ticket icon to enter the trade.

Stops should be placed in the event the market takes off and doesn’t make its typical pull back. If the market moves 60 pips above or below where the market was at entry, stops should be placed at those points to exit the trade and maintain loss to a 1:1 risk reward ratio. Profit is made when the market pull backs and settles between the breakeven points of 30 pips above and below where the market was at entry. Max profit is when the market settles directly between the two spreads.

For free access to the spread scanner and free day trading education, visit www.apexinvesting.com.