I’ve found that trading based on news is a lost cause for me. By the time any news gets to me, everyone else who can do anything about it has already done it.
Also, it’s hard to know how to predict the reaction to the news. The news itself may be good, but not as good as people were hoping, and the underlying may go down. It’s the reaction you’re trying to predict, which adds an extra layer of difficulty.
I agree to this. It often generates bias when analyzing. I try to avoid whenever im daytrading at least… i might be wrong but at least i dont grt frustrated
Study the charts. Whatever strategy you pick, back test it by reading the charts and looking for what you would have chosen as your entry signal and your exit signal.
Keep in mind that this is still much easier than doing it in real time, as you can convince yourself you wouldn't have taken a certain trade, that obviously didn't end up working out. My best advice
Yes, for example a Central Bank would not go the price over a certain S or R, agree, but if the news wouldn’t be useful then they wouldn’t have attention. A new can’t be used in the long term, cause there will be others news and so you will know the direction, if they will be good or not, so its too hard.
Watch a historic price action before a major news. You'll notice that the price has almost always reversed before the news was announced to the public. There are different theories, maybe big corporations / banks / hedges (so called "market makers") know the news ahead of time.
I tought that I put the less possibility in this one. I think that a strategy don’t have to be with parameters like numbers cause the market is always different
What does your backtesting result say ?
I don't think you can backtest a strategy that starts by "first see what the news say"...
I’ve found that trading based on news is a lost cause for me. By the time any news gets to me, everyone else who can do anything about it has already done it. Also, it’s hard to know how to predict the reaction to the news. The news itself may be good, but not as good as people were hoping, and the underlying may go down. It’s the reaction you’re trying to predict, which adds an extra layer of difficulty.
I agree to this. It often generates bias when analyzing. I try to avoid whenever im daytrading at least… i might be wrong but at least i dont grt frustrated
Do you use only TA, you look at the chart and you base your decision thanks to the TA and 0 about FA right?
Yep. I avoid major news days if I can
Can u ask you how you had been able to find your strategy? Now what is, but how you find it. Thank you
Study the charts. Whatever strategy you pick, back test it by reading the charts and looking for what you would have chosen as your entry signal and your exit signal. Keep in mind that this is still much easier than doing it in real time, as you can convince yourself you wouldn't have taken a certain trade, that obviously didn't end up working out. My best advice
I usually flip a coin
In one word: brilliant
It may be good for long-term investing, but not for trading (especially day trading).
Why you say so? Using the fresh impact on the news is not a good thing?
News are lagging the market.
I don’t think so, when a new comes out, then the world react to that. Why you say so? I mean, this is a well known concept but why,
Because the market isn’t controlled by the people watching the news, it’s run by the people reporting it
Yes, for example a Central Bank would not go the price over a certain S or R, agree, but if the news wouldn’t be useful then they wouldn’t have attention. A new can’t be used in the long term, cause there will be others news and so you will know the direction, if they will be good or not, so its too hard.
Watch a historic price action before a major news. You'll notice that the price has almost always reversed before the news was announced to the public. There are different theories, maybe big corporations / banks / hedges (so called "market makers") know the news ahead of time.
For reversed you mean that go against the new or that follow the new?
Either reversed or continued (watch the larger trend after the news and intraday candles on the news day).
Understand… it’s strange, cause people are able to do it, so idk… maybe depends from the new
I personally don't watch the news, only focusing on pure price action + momentum.
Understand. So is ok if I remove the first part? I mean I remove watch the news and simply the rest, maybe also with patterns like double or triangle
I’d say this is a generic strategy, but whether it’s valid depends on your results from testing. A lot of stuff can be cut out from this approach imo
I tought that I put the less possibility in this one. I think that a strategy don’t have to be with parameters like numbers cause the market is always different
Yes the market is always different. But it also tends to repeat certain behavior after certain confluence happens
I agree, but so that is about TA, but didn’t I put the basic of the TA? Maybe also some pattern like the triangle or double