News releases. When they are released during our trading sessions, many things can happen to the market. It can explode in a parabolic move. It can turn tail and chop around. Add to the news people like Fed Chairman Bernanke talking and you never know what he will say. With news releases, it is out at the scheduled time and you can move on. During testimony, you never know when the wrong words will escape the mouth driving prices all over the map (remember Geitner and his words causing a 400 point market move??). Ensure you are aware of the daily releases! They have the potential to make your day or break into pieces.
This video looks at the reaction of two pairs, the GU and EJ. Good pairs that cover some of the largest economies of the world. One goes to the moon putting in a range of over 270 pips while the other meanders in a 50 pip range for the U.S. session.
After watching this video, take a look at this
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