π understanding the importance of red folder news in a thread π§΅
news is imperative to my trading. ict says himself, βtime first, then price.β time = killzones & news drivers. without time aligned, price will not have the βenergyβ to get where it is intending to go.
i only trade on days with news. this acts as a beautiful filter for me. it effectively filters out the majority of choppy, lethargic days, and positions me to trade on the clean expansion days. take a look at your charts and see for yourself. the cleanest days are fueled by news.
the picture above is a hierarchy of red folder news volatility from highest to lowest. the majority of news events are tradeable, however there is a βbig 3β that should not be traded before or during. this is nfp, fomc, and cpi.
during the βbig 3β news events, you cannot effectively manage risk due to their volatility. this makes them un-tradeable because when you cannot effectively manage risk, you are gambling. any other news events are tradeable. news injects much needed volatility into the market.
volatility is your friend. trust me i know it seems scary. when i first began trading, it intimidated me too. however, now it is a crucial part of my trading plan. the cleanest, most effortless trades are alongside volatility injection from news.
Loading suggestions...