Trader Dale Volume Profile

Macroeconomic news
3. Monster red news
This kind of news is capable of changing or starting daily/weekly/monthly trends. Not taking any
intraday trades (or swing trades) during and after such news is vital.
If there is a one-sided aggressive movement, then don't attempt to catch the high or low and
rather let the price shoot past your S/R zone and enter a “Reversal trade“ in the direction of the
newly started trend. Still, you should really be careful and be sure that the first heavy volatility
spike is over before attempting this. The reason is that during such strong macroeconomic events,
all the banks and their algorithms are trading aggressively and the outcome of those first crazy
moments is basically unpredictable. You should only start trading when the situation calms down
and clears up a bit.
If there is such a strong news then it is usually best to avoid it by stopping trading few hours
beforehand and start trading again in the next trading session, or in the session after the next
session - for example if there is FOMC meeting in the US session then you start trading again in
the Asian session. If you want to be more conservative, then you won't start trading until the EU
session starts.
Examples of "Monster red news"
Rate decision, Minimum Bid Rate (and following press conference)
FOMC Meeting, Monetary Policy Statement (and following press conference)
NFP (when market feels that NFP number can directly affect Rate decision)
Economic news impact tool
There is a handy tool which is called "Economic news impact tool
(https://www.forexpeacearmy.com/tools/economic-news-impact)." With this clever widget, you
can easily check the historical volatility caused by any standard macroeconomic news. The main
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