Crude Oil Previous 6.4 M
Crude Oil Actual 0.4M
Crude oil is bullish as per inventory result
Tamil trader you seem to be doing quite well. But you are forgetting something very basic. Remember news is already factored in before the news is announced. It does not matter if news is good or bad. Market will not move as per that , if it did many people will have the edge and many people will win, but that is not possible because you need someone to take your offer on the other side. Institution do not care about what kind of news it is , only that news moves the price faster on its journey.
So do not base your strategies on the outcome of news. Institutions will get you all the time.
if you know how price is moving and you know its destination, trade accordingly and if you cannot make out the direction stay out of trades during news.
I hope many newbies thinking the outcome of news decides the direction of price will learn from this post.
I m posting this because i see many posts where newbies/traders think they can know the direction of price depending on the outcome of news and lose big time. But it does not work that way. Market already knows its direction before the news and market will continue on its journey irrespective of outcome of news , only thing is it gets a nitro boost...
if you don't believe me , let me show you the path. Crude is currently in a descending triangle on daily and after the news it is only doing what it is supposed to do, i.e move inside the descending triangle, until breakout. At the time of writing this post , current market price is 6086 and should reach 6050 for feb contract. I don't know when it will reach , could be today or tomorrow. Price was already in this path before the news came out and it is speeding up now...
Hope this post makes sense.