Understanding Fundamental Analysis – Economic Events & News Trading
Believe it or not, there are a large number of amateur traders who ignore news events and economic releases completely. They concentrate solely on technical indicators and chart patterns. Then they wonder why the market spiked violently against them in the space of a couple of minutes.
, news events can offer low risk trade set-ups so long as you are aware of three things: the market expectation running up to the event (what is priced in and what is not), the likely reaction from different outcomes, and the best way to play those outcomes.