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Impact of news catalysts on longer-term range trading?
I'm still trying to get my head around how to best factor in those sudden, high-impact news catalysts when I'm primarily focused on range-bound trading strategies. When $EURUSD or $GBPUSD are clearly bouncing between established levels, does anyone else find it throws a wrench in the works, or do you just generally scale back or tighten stops around major data releases? How do you guys typically handle that without getting faked out?
1 comments · 1 points
Good question. I typically reduce my position size or sit on the sidelines entirely during major news events. The volatility can lead to whipsaws that blow through tight stops, even if the overall range holds.