Trader Dale Volume Profile

Macroeconomic news
Tip #8: When to start trading again after the news release
The general rule to follow is this: start trading again when the post-news volatility has calmed
down. However, this can sometimes be a bit hard to tell.
What helps me is to first check the type of the macro news. If it is really strong news like an
Interest Rate Decision (or following press conference), NFP, CPI, GDP, then I expect heavy
volatility and I am more careful about trading again after the news was released. Also, if such a
strong macro event causes a one-sided movement (= strong one-sided uptrend or downtrend),
then I am extra careful, and I prefer not to take any trades until I am really sure the markets
calmed down. The risk of a strong and aggressive movement pushing past the level is just too big
to take, and it is usually better to be safe than sorry. What I prefer in a situation like this is a
reversal trade (more about it in tip n.10).
If the news is not as significant (for example Building Permits, Oil Inventories, Retail Sales,
Unemployment Claims), then I don't really expect the impact on the markets to be that severe. In
such cases, I only wait a bit for the price to calm down and then I am happy to trade again. This
can be for example 1-10 minutes.
Tip #9: Re-enter a trade after a macro event has passed
If I quit a trade before news and the news doesn’t cause a significant enough spike to have hit SL
or PT, I try to re-enter the position if I get a chance to enter at the same or better price as before.
I only re-enter if the volatility has settled down and if the price didn’t go near the Profit Target
(let’s say around 75% or more). I also re-enter only when I still believe it could be a profit. How
do I determine this? As an example if I have a level I’m looking to go long from, I want to see a
sharp and fast rejection of lower prices (1-minute chart) if I am going to enter my position again.
If there is just a weak low and the price only slowly rotates at the reaction point, I am usually a
bit hesitant to re-enter, and I may not re-enter it at all. In the two pictures below, you can see a
short trade that I quit before the news and re-entered it after it. You can also see the sharp
rejection of higher prices that assured me to re-enter the trade.
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