Market analysts explain the change in the exchange rate by publishing news better or worse than expectations.
The News impact L indicator collects exactly these expectations from the publication of actual values for the selected period and the importance of news.
The resulting parameter of the news impact index shows the direction of a possible course change.
Comparing the news impact index and the actual direction of the global trend, it is possible to build a trading strategy on objective data:
- The results of trading the same algorithm for different trading sessions will be different. Therefore, it is better to choose a session (Europe, America, Asia).
- The direction of the global trend (the higher timeframe) displayed by the indicator will determine the Sell or Buy positions we are considering.
- The direction of the news pressure displayed by the influence index will show whether the global trend is consistent with the news. If Yes, then you should consider changing it when choosing other periods or importance. Stable values of the influence index when the selection parameters change will show the validity of the global trend.
- Pay attention to the time elapsed since the publication of the previous news and remaining until the next, especially for news (High and Medium). If these values are within half an hour, it is better to wait for the market reaction to their publication.
- From the point of view of the Smart Money strategy, a favorable moment for opening a position will be if the trend direction on the current timeframe is opposite to the higher one.
- If all the conditions are met, you can open a position or a pending order. It is convenient to use the Orders maker utility.
The News impact L indicator : https://www.mql5.com/en/market/product/107761
Orders maker utility: https://www.mql5.com/en/market/product/107137