The 64K question is how to recognize the tone of the news: is it bullish, bearish or neutral? Which requires a natural language processing toolkit like e.g. AlchemyAPI. That's the challenge with technical trading the news. Here's an example of linking Wealth-Lab up to a source of historical news: -Eugene
Trading the news is a 50/50 gamble ( unless of course you got inside information ) The main reason is because even if you're correct in determining how the news will break positive or negative what you'll never know is how the market will react to it - Up or Down How many times have you heard of great positive earnings and yet the stock dumps etc..etc...
Every trading decision is a 50/50 gamble but your odds are getting bigger if you backtest the idea. -Eugene
Ever since the Trump Tweets phenomena...I have been using this tool to read out his real time tweets with digitized voice just in case...like last Thursday with China deal....
I tried to trade on the news, nothing good came of it. As a result, I came to the conclusion that all the most important news that could have a significant impact on the price are already reflected in the price. Major players are aware in advance that something important can happen and therefore they have already taken this into account and have taken all necessary steps in order to capitalize on this.
longandshort, Do you Day Trade the News Release events of things like PMI? Any others? Economics Dashboard At this point, you should have a good idea as to how an economy works, what makes an economy competitive, and what indicators you can use to evaluate economic growth. To help you with this, I have selected a few key links for you to track what's going on. Global PMIs: https://www.markiteconomics.com/Public/Release/PressReleases US PMI RoB (ISM): https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/ Rank countries by PMI: https://www.theglobaleconomy.com/rankings/pmi_composite/ Pro tip: - Set up google news search for "central bank" and "economic outlook" keywords to quickly find relevant news
Why do you need news? For intraday trading, they are not needed at all, there is movement - I trade. If for medium-term trading, you always get them second. Big institutional players always get the news first and have a huge team of analysts who study the news and make predictions. The news is only important if you are constantly trading only 2-3 stacks and you are a guru in everything that happens in these companies. The most important news is global news, unemployment, rate hikes, and big bosses talk. And then, you never know where the market will go. The news is good and the market is falling. How many times have I seen this.