On this week’s roundup of Donald Trump’s tweets, we look at 2 significant tweets that didn’t display their opportunities immediately but instead presented great profit opportunities for traders who understood the impacts of the tweets fundamentally.
In this example, we can see how after Trump tweeted a very pro-US comment, the US Dollar index made a drastic U-turn and strengthened for the rest of the day. A trader should keep an eye out for such tweets because they can really turn the market around.
So just how does such a tweet look on a graph? Take a look at the timeline where the Tweet was posted. The decline continued for a short period until the tweet went viral. Traders who followed that tweet made a killing, especially those who set a buy limit order within minutes of the post.
The tweet was a reminder to the rest of the world that the US is doing fantastically well, and what it resulted in was the S&P500 strengthening over the course of the day.
A trader can take advantage of this trading opportunity by playing the momentum of such news.
In this picture above, we can see how the price went down to test our Ichimoku cloud and rose above it. A trader can go long when the price rises above the Ichimoku cloud and he can close his position the moment price goes below.
This would allow him to play the immediate strong momentum of Trump’s tweets. In the example above, we can see that the trader would have bagged a healthy 25 pips on S&P500.
Perhaps the next time Trump drops a Tweet bomb, you’ll be able to act fast and take advantage. Open an Exness account today and be at the ready.