What if you could profit from the news—even if you had no idea which way the market would go?
Good news: you can.
All you need is enough volatility—and that often comes from major news events like economic reports or central bank announcements.
Step 1: Focus on High-Impact News
Not all news is worth trading.
Stick to the major economic releases—the ones known to move the markets significantly. These include things like interest rate decisions, employment data, and inflation reports.
Step 2: Measure the Pre-News Range
Roughly 20 minutes before the news comes out, check how the price is moving.
Take note of the highest and lowest prices during that time. These are your breakout levels.
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The upper breakout point is the high of the range.
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The lower breakout point is the low of the range.
⚠️ A tighter range often leads to a bigger breakout once the news hits.
Step 3: Set Your Entry, Stop, and Target
This method is called the straddle strategy, where you place orders on both sides of the market.
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Buy stop order just above the high.
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Sell stop order just below the low.
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Place your stop loss about 20 pips beyond each breakout level.
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Your take-profit target can be roughly the same size as the range.
This way, it doesn’t matter which direction the market moves—you’re ready to ride the wave either way.
Why Use the Straddle Strategy?
Because it takes the guesswork (and emotions) out of trading the news.
You’re not trying to predict direction—you’re simply reacting to movement.
Even if the price fakes out in one direction and reverses, your second order could still trigger and cover the initial loss—or even turn a profit.
In the best-case scenario, the price breaks out cleanly in one direction, and you ride it all the way to your target without ever triggering the losing side.
Final Thoughts
Trading the news without a directional bias can open up more opportunities—especially during high-volatility moments.
Just remember:
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Focus on high-impact news.
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Measure the pre-news range carefully.
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Always use stop losses and realistic profit targets.
While there are many advanced news trading strategies, mastering this simple straddle setup is a great way to get started.