News is extremely important in the long-term and short-term, depending on circumstances. The “fundamental data” released by banks usually isn’t even as important as quasi-political news in the shorter-term, outside of the intra-day term.
I find that it’s impossible NOT to worry about the news when trading. Can purely technical trading be done without even slighted considering what’s going on with the news/economic news release cycle?
Bur first, you need to have a solid understanding of the fundamentals that drive the currency markets and be aware of the current narrative(s) that dominate the global financial markets.
Only then will you be able to figure out how news, whether economic data releases or spontaneous tweets from everyone’s favorite Tweeter-in-Chief, will move prices.
The current price is the sum total of all the known public information. When news comes out, the price fluctuates as market participants digest this new information and adjust their outlooks.
This new outlook could be supportive of your own trade outlook or against it.
Just because one favors technical analysis doesn’t mean one can ignore the fundamentals that are currently driving the currency pairs one is trading.
Traders who grasp the macro fundamentals and are attuned to the dominant market narratives or themes at the moment will minimize experiencing the “WTF just happened?!!!” moments when all of a sudden price makes a massive move up or down.
I used to think it shouldn’t matter that much especially if you’re trading 1D but I’ve been taken out of trades when pairs are extra volatile (because of a news release or sometimes even Trump’s tweets) and my stops aren’t well-placed so yes, based on personal experience, it matters.
They matter very much, as news build expectations and give understanding of the world economy’s future. A lot of traders don’t use any indicators and rely only on news and reliable analytical sources. The fact is that the politics affects all of spheres, especially trading and national economies and those who can analyse news properly will always have a lot of profit.
News matter only in fueling a directional momentum. Once your technical analysis points to a directional bias, you benefit if news align with that direction as it enhances the chance of making good profits and lasts longer. However, any news that is not aligned with a technical direction will have a short-lived effect.
News can very quickly find its way into price, so I always set a stop-loss order and then maintain trailing stop-loss orders.
for me news are just a catalizator …i very very often see that news trigger the set ups
so if there are big red news i like to watch chart with my pre market levels and orders or get in per market order if price arrives at my zones …
just things like brexit news or very very important stuff is another story
So much info is shared here. Thanks.