3 Types Of Market Reactions – Closer Look:
When a news event is released, you can expect to do one of the following actions:
- Follow the deviation to BUY or SELL…
- Wait for Market to move to a range and take a reversal trade, or
- Do Nothing.
1. Follow the Deviation
Making sure that the market is showing proper first reaction, meaning if the deviation for BUY is indeed moving the market up or deviation of SELL is moving market down.
If you are waiting for Retracement, wait for retracement based on dual FIB levels, one from the daily range and one from the Movement, then find where the Fib retracement levels intersect for stronger reversal levels, usually the first significant level.