Trader Dale Volume Profile

Macroeconomic news
I personally don't really care about "yellow" (low impact) or "orange" (medium impact) news
because this news doesn't have that strong impact on the markets (except US governors speeches
- those are sometimes significant, and I treat them like "red news"). They don't usually cause
significant spikes in volatility or anything else I should be concerned about. Because of this, I don't
mind trading during these release times of "yellow" and "orange" news.
What I do care about is the "red news." Those are the most significant, and I recommend avoiding
them for the most part. However, the problem with red news is that some are “more red“ than
others. Don't get me wrong, the color is the same, but the importance and possible impact of
different red news can vary significantly. Being able to distinguish between various red news
could appear not so important, but in fact, this knowledge can help you a lot. Why?
Let me give you an example: There is a red news called "Crude Oil Inventories." There is another
red news called "Rate Decision." Both are marked red as important news. The first one hardly
ever makes any real impact on the USD while the other one is usually a start of a crazy ride that
can last hours or days! In my trading, I know that if the price doesn't really move during the "Crude
Oil Inventories" everything is okay and I can start trading again basically 1-2 minutes after the
event. When there is "Rate decision," I know that I won't be trading at least few hours after the
news release and if the news causes a one-sided trend to develop, I definitely won't be taking any
levels that would go against this trend. I hope this illustrates that there is a clear difference
between items marked red.
To give you something to hold onto, let me distinguish the red news into three categories.
1. Weak red news
If you feel like being aggressive, then you can hold your intraday trade even through such news.
This news probably won't cause any major volatility spike or sudden price change. If you quit
your trade before this news, you can re-enter the trade quite soon (let's say 1-5 minutes) after
the release. If your support/resistance level gets hit during the news, you can take it (if you feel a
bit aggressive) or you can wait a bit and then take the trade few minutes after the news.
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