Stacey Burke Trading
The video discusses the importance of understanding why markets move without any fundamental news. Traders should look for simple setups and be disciplined in their trades. There are opportunities for big moves due to major red news coming up.
Understanding the Market: What Does No News on the Calendar Mean?
As traders, we rely on news events to drive market movements and determine our trading strategies. However, what happens when there is no major news on the calendar? This is a common scenario in the forex market, and it can be confusing for many traders as they try to make sense of the price action. In this article, we will discuss the importance of understanding market movements when there is no news on the calendar and how to approach these situations as traders.
The DJ30 Trade
To illustrate this concept, let’s take a look at the DJ30 trade. For two consecutive days, the trade had the exact same high and low of the day, and there were three levels of rise for the dump at New York open. This movement occurred despite there being no significant news events that could explain the sudden increase. Therefore, it is essential to ask ourselves why there was such a significant market movement when there was nothing fundamentally driving it.
Gold Trading
Another example comes from gold trading. The market moved three levels – 25, 25, 25 – sideways at Double zeros and collapsed for 50 Pips without any significant news. So if you’re in that short trade, you may ask yourself, “where do I take profit?” The market has already moved by 50 Pips, and you may want to lock in your profit as you enter the second hour. This is because the second hour can potentially begin the reversal for a vertical move back into shorts at the New York open.
Think Simple – Dump and Pump
In these situations, it is critical to think simply; think Dump and Pump or Pump and Dump. When there is no news on the calendar, you have to understand the market’s opening range, initial balance, high, and low of the day. This can prepare you for both potential long and short trades. You need to stay disciplined and focused and wait for the best trade setups.
First Red Day Trade
Traders often look for the First Red Day trade. In the example given, a first red day trade occurred in Europe, and the market took out the low of the day and the low of the week. So if you believed that the market is headed for a short, you must remember that you could get squeezed since it can engulf the low before it moves sideways into the New York open.
Simple and Clean Strategy
In such situations, keep it simple with a simple and clean strategy. Engineered charts with timing, levels, and setups can prepare you for potential trades even when there is no significant news on the calendar. With time, you can become one percent better every single day at identifying the best trades and taking advantage of market movements.
Final Thoughts
In conclusion, understanding market movements when there is no news on the calendar requires a simple and disciplined approach. You must understand the market’s opening range, initial balance, high, and low of the day. Stay focused and patient, and look for the best trade setups. A simple and clean strategy with well-engineered charts can prepare you for potential trades even when there is no significant news on the calendar. By staying disciplined and focused, you can capitalize on market movements and become a successful trader.
