Setting up your Charts for 60s Options

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Video Transcription

Welcome to the fourth lesson of the News Trading and 60-seconds Option Course. In this lesson we will teach you how to set up your calendar, how to filter out the non-important events, how to set up your charts and the currency pairs that you will trade according to the releases that you are waiting for and the levels that you will be watching.

So the first thing is to go to your economic calendar and go to the filters. The first thing you want to do is filter out the countries that will have no impact on the currencies that you will trade with this strategy. The currencies that you will trade with this strategy are the euro, the U.S. dollar, the Aussie dollar, the Japanese yen, the Canadian dollar and the New Zealand dollar. And of course the British Pound, I’m sorry to forget that.

We are going to filter out Norway, South Africa, South Korea, Singapore, and we are going to filter out Brazil and China. We are going to leave the Eurozone, France, Germany, Hong Kong. We are going to filter out India, we’re going to leave New Zealand, filter out Mexico, the United States, the United Kingdom, Switzerland, Spain, Japan, Italy and Australia.

We are going to select all the categories because we will be trading every important event, no matter what, with this strategy. We will choose high to medium impact events. Then we will apply it and there you go. These are the filters that you will use on the economic calendar. As you can see, you will only get events or data being dumped from the major currencies and the most important events.

Now, let’s say that today is Thursday, March 20th and we have just opened up our charts. If we go to the economic calendar, we can see that we have four high impact events on the US dollar. So we are going to be monitoring currency pairs with the U.S. dollar.

So we go to our chart and we go to our column of assets and the first one is of course, the euro/US dollar. Then the GBP/USD, the US dollar/Canadian dollar, the US dollar/yen, the Aussie/yen and we could be monitoring gold, but we will actually be monitoring the New Zealand dollar/US dollar.

After you do this, because if we come back to the economic calendar, we can see that we have the initial jobless claim at 8:30 in the morning and the existing home sales and the Philadelphia Fed Manufacturing Index, which is the index that raise the relative levels of generated business conditions in Philadelphia. This is one to look for, the Philly Fed Manufacturing Index is one to be looking for and of course the existing home sales.

Now that we know that the currency that we need to monitor is the U.S. dollar, we go to the MT4 platform, which we have the Euro/US Dollar and all the major U.S. dollar currency pairs. You go back to your charts, you go to the one-hour timeframe. You go to the one-hour timeframe because we want to put on the overall levels of support and resistance on each currency pair.

We’re talking about the highs and the lows of the currency pairs. Remember that in these releases, sometimes the market can move 100 pips. So if the price is 110 pips away from a level of resistance and you think that this level is not important because it’s too far away from price, well, it’s not. You need to do this.

You put on the horizontal line here at the top and you can put on another one here at the bottom. This is not the actual bottom because we do have another level here and you will have to put on another horizontal line right here.

You can see that this level was tested as support once, twice. This is just a fake out. Here we’ll test this twice and now we are just testing it again. And you do the same with all the currency pairs.

You go to the one-hour chart and you place your levels, they don’t have to be exact levels, you just want to have these horizontal lines on your charts because when you move to the one minute timeframe to actually trade the news, you need to have these levels as a visual aid. You need to have these levels drawn on your charts.

Here’s the euro/US dollar. We’re only going to do three for this video. And the GBP/USD. We have to go to the one-hour chart and we have to draw this level right here. This is more of a choppy price action on cable, but you need to draw every single level.

This is a level of support that was tested as resistance. This is resistance of course. And this is support. Now that you have these levels and you know which currency pairs and which events to look for, you just have to wait for the actual announcement. Remember that you need to do this at least 10 minutes before the actual announcement because you don’t want to get caught in the middle of a massive move without being prepared.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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