Please how will I know if a news release will cause a long trend on the daily and weekly time frame in particular or if it will not cause any trend at all and also if I have an open position how will I know if a news release will affect it
No single item of ‘news’ will affect a weekly or to a lesser extent a daily - unless it’s an extreme piece of news - and such releases seldom happen.
Your question is under the TA headline and you are asking a FA question - this is the type of questioning that very few even think about - keep asking
If there were anyone who knew which way the market would go after a news release it would be the big banks - they have the best brains, the most information and the best computing power. So if they were sure price would rise they would be buying before the news release: or if price was going to go down they would be selling before the news release.
But lucky for us when they do decide to buy or to sell, we will see their decision because they are so big they cannot hide their footprints - when they buy, price goes up, when they sell price goes down.
Or so you would think - but often price goes up before a news event and then falls after it, and often price goes down before a news event and then goes up after it. Therefore the conclusion you must reach is that nobody knows which way price will go after every news event, not even the big banks with the best resources.
Don’t try to out-think the markets.
Well said. I suppose that’s the power of a well placed stop loss or OCO.