This post, as the title suggests, is about trading forex news releases and, incidently, is a small update to the appearances of my PositionBook chart and OrderLevels chart.
I recently came across this forexfactory post which shows how to download the underlying data for the forexfactory calendar, a screenshot of which is shown immediately below, and I thought I would look into the idea of trading around forex news
releases. If you look carefully at the screenshot you will see that at 2.30pm (CET) there was a high impact (red folder icon) news release regarding the Canadian dollar (CAD) which came in under expectations. The following OrderLevels chart
clearly show the big move that immediately followed this news release (CAD weakness). The OrderLevels chart also shows the accumulation of sell orders (red background colour) that would have been an almost perfect take profit level for the day, whilst the PositionBook chart shows the accumulation of long positions (blue background colour) during the sideways movement that preceded the news release. These two charts both show the above mentioned appearance update resulting from the use of the b2r colormap function.
definitely the result of this CAD weakness rather than USD strength (see the two rightmost currency strength charts).