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Thread: Does news really move the market?

  1. #1
    Trader Azis Muslim's Avatar
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    Lightbulb Does news really move the market?

    Hello

    I want to make brief presentation about this topic. This really bothers me at first time I watched a video of trading psychology but later I realized trading the news do not give me more than 50% of winning ratio. I also get confused by news on market because at some points, market did not move in correct direction along with the news result. Moreover, many rumors spread all over internet which one analyst expert said this while others might said that.

    While I watched the learning video of trading psychology, there I learned all about the aspects of trading which need to do and need to avoid while we trade. One of the biggest thing we must avoid is the news. You know why? It is because news actually hunting retailer’s stop loss while creating big space of movements which can only be analyzed better with technical analysis. It has come to my attention that fundamental analysis is good but can not be used as main consideration for market entries. Not for me.

    Here are some examples about news trading. Make some reviews back on GBPUSD pair on date March 16th 2017, it was FOMC news and Fed rate increased from <0.75% to <1.00% as expected. But unfortunately, market was going up instead of down by following the news. How could market did that? Here is the answer. Technically we could identify it with the help of trend line. Check the screenshots below:


    Follow the instructions on screenshot above and see market was moved up instead of down because price touched lower trend line and previous resistance levels which that moment became a support for that price movement. So according to this, what is your conclusion about news? Does it really give us good market entry or technical analysis is working better here?

    I am not with the people who hate fundamental analysis, for me I just avoid trading with it anymore because I want to focus only with my technical strategy. I am writing this based on the facts I saw on market, not from what I think about it. It took a while for me and probably for you guys to realize the same thing. Try to avoid news and make your trading system as simple as possible. The mindset is pretty easy to build, if you really think forex trading is a difficult business to do, then your brain will automatically process it and decrease your ability to learn things faster and easier.

    Change your mindset, focus on your technical analysis, and keep things simple.

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  2. #11
    Trader Lyon's Avatar
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    Quote Originally Posted by Azis Muslim View Post
    [lang=id]

    Mostly says about this too but I do not believe that in full just because many people said that to me. From my simple realization about market and news, I think those big swings created during news release is just a temporary reaction from big traders to confuse retailers about market real trend. It also hunts our stops very easy and only traders who can think quick enough could get in and out with profits through news. I am not a good and quick thinker so I do not trade news very well.[/lang]
    How then do you think the market move, do you think the market act on it's own? Or what do you think when it is been said that the market reacts to supply and demand? Well, that is because the supply and demand are what big banks are doing and you don't expect an investor to invest in a country with bad economy, that is how forex trading works.

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  3. #12
    Trader Azis Muslim's Avatar
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    [lang=id]
    Quote Originally Posted by Lyon View Post
    How then do you think the market move, do you think the market act on it's own? Or what do you think when it is been said that the market reacts to supply and demand? Well, that is because the supply and demand are what big banks are doing and you don't expect an investor to invest in a country with bad economy, that is how forex trading works.
    What do I think about that? Well I think market is moving by big trader's activities in trading and that is just it. I believe the idea about market to move the news but not completely taking the whole action to move market because the only one who able to move it are just big traders. News itself can not move anything but only give other traders some sort of news to pull the trigger of market high volatility sir.[/lang]

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  4. #13
    Trader sniper007's Avatar
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    Quote Originally Posted by Azis Muslim View Post
    [lang=id]

    What do I think about that? Well I think market is moving by big trader's activities in trading and that is just it. I believe the idea about market to move the news but not completely taking the whole action to move market because the only one who able to move it are just big traders. News itself can not move anything but only give other traders some sort of news to pull the trigger of market high volatility sir.[/lang]
    Another important thing or rather example I want you to look at was the time during the US election, hope you were able to see how the market moved in a crazy way, that was political event news and it move the market. In a nutshell, you need to know that the news moves the market and the way it does is through the reaction of supply and demand from traders.

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  5. #14
    Trader Azis Muslim's Avatar
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    Quote Originally Posted by sniper007 View Post
    Another important thing or rather example I want you to look at was the time during the US election, hope you were able to see how the market moved in a crazy way, that was political event news and it move the market. In a nutshell, you need to know that the news moves the market and the way it does is through the reaction of supply and demand from traders.
    Sir, I tried to understand such movement but lately things did not work properly to me if I blindly follow and try to use news as my main consideration. It has come to my attention now that I try to move on from news slowly and start not trading with them any longer with exception to news I always like to follow like interest rate and others. Mostly technical analysis is my first thing as my strong basis of reason to enter market with my trade.[/lang]

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  6. #15
    Trader sniper007's Avatar
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    Quote Originally Posted by Azis Muslim View Post
    [lang=id]

    Sir, I tried to understand such movement but lately things did not work properly to me if I blindly follow and try to use news as my main consideration. It has come to my attention now that I try to move on from news slowly and start not trading with them any longer with exception to news I always like to follow like interest rate and others. Mostly technical analysis is my first thing as my strong basis of reason to enter market with my trade.[/lang]
    My best advice I will give to you is that you should forget the trading of the news, candle stick will help you more better in addition with the time frame which is higher, I am sure you would be able to have success in the market most of the time. News moves the market but hard for us to predict, but candles and charts makes it more easier for us.

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  7. #16
    Trader Lyon's Avatar
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    News is one important cause of action, that means it has been one of the most reasons why we see the traders taking trades, so basically since it causes such then it means that it do cause the market to move, indirectly or directly, but what matters is that it makes the market move and makes traders to take various actions.

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  8. #17
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    news trully will move the market a lot but it is not like that all news will have the same impact anyway. Some news will only have short term impact and there are some news that will have a long lasting impact. As a trader we need to know each one of them and pick the better news to be traded. perhaps the volatility provided from the market might even give us a better entry later.

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  9. #18
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    [lang=ar]IN my trading system i do believe in that the news has the most effective impact fro the price to move them . thus the trading can be tied to the news and the events very strongly , fro many reasons I think that the price can go up and down according to the power of offer and ask included within the new .[/lang]

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  10. #19
    Trader Azis Muslim's Avatar
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    Quote Originally Posted by sekiryutei View Post
    news trully will move the market a lot but it is not like that all news will have the same impact anyway. Some news will only have short term impact and there are some news that will have a long lasting impact. As a trader we need to know each one of them and pick the better news to be traded. perhaps the volatility provided from the market might even give us a better entry later.
    [lang=id]Hi Mr. sekiryutei welcome back sir. It is good thing to have you back in this forum and see your valuable information about market. No doubt if it is from you sir because you really know how to trade with news and you understand the way it works. Unfortunately it never happened to me because I have been trying countless of time but could not get it until now. News is hard for me to understand that is why I do not rely much with it.[/lang]

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  11. #20
    Trader layigold's Avatar
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    Yes , news move the market as it responds to traders' reactions ( I mean the big players here) based on the outcomes of the news but it is not the news that cause price to move . It is the imbalance that exists between the bulls and the bears that moves the market. During economic news , market could become so wild and unpredictable and that is the more reason why you should thread carefully so that you do not have your entire account being wiped out just withing a very short period of times

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