No need, important news most definitely affect price, it's a volatility event, that goes without saying, so I have no idea where you going with your obnoxious posts. Freaking newbies talking shit out of their asses.
For me....directional bias is bad. When I test a system with 10,000 trades over 10 years on 100 stocks I accept each trade that occurred years ago. I am not saying that context in a given past time period is insignificant but I do not look for CNBC or Bloomberg historical archives to "study" the macro issues surrounding that 1 trade years ago that I include in my backtest. The above way of thinking helps me to accept tomorrow's trade as 10,000 + 1. Now all I am left with is edge, expectancy, risk managemnt and probabilities. I suck at discretionary stock trading ...have had some past decent periods of mechanical tradimg, and, am committed to dropping discretion. Just my 2 cents.
So, which is it? Does news effect price or not? I think there is great value in reading the economic calendar, making a prediction about how an anouncement may effect price. However, one needs to be open to the fact that their prediction may be wrong, and they need to adjust according and quickly.
News affect price, knowing about the time news will hit the wires is imperative. However, trying to decipher what the actual content means for the market is a horrible mistake, for that you go to price. Pay attention to the schedules but ignore the content outside of charts. Hope that clears it.
''Freaking newbies talking shit out of their asses.'' But it`s not unusual,ya know... p.s. "News affect price, knowing about the time news will hit the wires is imperative. However, trying to decipher what the actual content means for the market is a horrible mistake, for that you go to price. Pay attention to the schedules but ignore the content outside of charts. Hope that clears it.'' I thought this one should be included,as well.
I understand you, but I don't really agree. I'm trading primarily the EURUSD pair right now, and over and over again I see the chart following through a process of digesting the news. 1. A reaction. 2. A counter reaction. 3. A process of sifting through the news until a new price balance is discovered. This is very tradeable.
Oh I see. So I follow price action intuitively. Interesting. See what you're saying isn't quite right. Price is a consequence of a how people respond and interpret the news. You can see this in the reaction. USA Job numbers good. EURUSD drops. Oh, but wait a minute, the types of jobs created aren't ideal. EURUSD goes back up again. True, you witness people's reaction through the price, however you can anticipate reaction by making the effort to understand how job number results (for example) can impact price. It will help you to understand whether or not a particular price movement is for real and not just a tease.
This thread has taken quite the turn. With news, you can sometimes know what the numbers will be by looking at the chart. Just have to watch out for the shakeouts, but there are many traders who dont even pay attention to the news and just trade the charts and it works well for them