Discussion in 'Trading' started by angelnish, Jun 13, 2012.
Anyone here who trade the news. Please explain to me, how it works and how do you do it. Thanks
No, I trade my setups, not CNBC
Here is how the News Equation worksâ¦ The type of news were talking about is âunexpectedâ good or bad news.
Scenario â Market is midway into a strong monthly and weekly rally cycle. Basically, the strongest market possibleâ¦
Very Bad News â Market dips hard, sells off for an hourly cycle or two, then forms a divergence and rallies HARD into new highs.
Bad News â Market dips hard for a few hours then begins a fast rally into the highs.
Good News â Market rallies hard for a few hours into new highs then slowly chops upward.
Very Good News â Market rallies hard for an hourly cycle or two then goes sideways for days.
The standard news you see day to day doesn't matter at all. These economic reports and crap... They just "catalyze" the market to trade faster and with more volatility for a couple hours following the news. It's statistically proven that these small news events have zero ability to predict forward market movement over the hours following.
Anyway, have a good day! Looking for a rally off 1310.75 out of the gate, but were topping out today into late week so be careful!
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