💡 How to deal with economic news in technical analysis?
Even the best technical analyses can collapse in the face of strong economic news. Ignoring the news can put your trades at risk, especially during sensitive data times.
🔹 How to integrate news with your technical analysis?
1. Follow the economic calendar daily
Know the timing of impactful news such as interest rates, unemployment, inflation… and do not trade just before it.
2. Avoid opening trades an hour before the news and half an hour after it
Movement during these periods can be random or full of manipulation.
3. Combine the technical context with the news
If the price is at strong resistance and a negative news for the currency comes out – this could be a well-considered selling opportunity.
✍️ Practical Example:
The price was at an important resistance, and before the release of the US inflation data, I avoided entering. After the negative news was released, support was broken strongly with high trading volume. The technical analysis aligned with the new trend after the news, which gave an accurate trade.
📌 Next Lesson:
How to analyze volume deeply and use it to discover the upcoming movement?
