{"id":12795,"date":"2022-05-20T12:48:19","date_gmt":"2022-05-20T11:48:19","guid":{"rendered":"https:\/\/axiafutures.com\/blog\/?p=12795"},"modified":"2024-02-09T09:38:31","modified_gmt":"2024-02-09T09:38:31","slug":"3-steps-to-trade-fundamental-news","status":"publish","type":"post","link":"https:\/\/axiafutures.com\/blog\/3-steps-to-trade-fundamental-news\/","title":{"rendered":"3 Steps To Trade Fundamental News"},"content":{"rendered":"\n

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3 Steps To Trade Fundamental News Introduction<\/h2>\n\n\n\n

In this blog post, we will break down 3 steps to trade fundamental news. When dealing with the news, we need to be aware of the current narrative. Because narrative sets the expectations for the market, anything outside of that narrative acts as a surprise. So the fundamental narrative gives us the scope of where we are and where we can go if a change of that narrative occurs. Going further down the rabbit hole, we will break down the importance of positioning, price response, and the market’s ability to trend. A great example of the change of that narrative was the recent ECB’s hawkish pivot<\/a> that our Elite Traders were able to profit from greatly. <\/p>\n\n\n\n

This article is based on the video below.<\/p>\n\n\n\n

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3 Steps To Trade Fundamental News<\/figcaption><\/figure>\n\n\n\n

3 Steps To Trade Fundamental News<\/h2>\n\n\n\n

As soon as we understand the narrative, we can start to model scenarios that would change the narrative. This is where fundamental news trading starts. There are other forms of news trading, but today we are focusing on the change in the consensus<\/strong>, the change in the narrative. Additionally, we can add a sentiment as well. That is how the market perceives the current environment: risk-off or risk-on. <\/p>\n\n\n\n

Now let’s break down three important elements that we can add to our equation.<\/p>\n\n\n\n

Positioning<\/h3>\n\n\n\n

What is the current positioning? Whether it is the positioning leading to the expected event or just the current positioning, we are looking into two things. In the short term (weeks and days) we want to know:<\/p>\n\n\n\n