How news is evaluated and analyzed.

I will try to summarize as much as possible, but this topic is important and there are courses that teach this type of data analysis, which is considered one of the pillars of fundamental analysis. I consider this article to be brief and only highlights of this topic.

Positive news + no price reaction rising with positive news = distribution

Positive news + positive price reaction = temporary rise

Positive news + price stability = accumulation

Negative news + negative price reaction with news = discouragement

Negative news + price stability with no positive or negative reaction = accumulation

Of course, each news item has a certain impact size, and not every news item has an immediate or rapid effect, and not every news item is real. Some news has a delayed effect over the medium to long term, while some has a direct and rapid impact, and some news has a temporary effect, while others have a continuous and sustainable impact for a long time. Some news has a temporary and rapid effect, and then it is as if it never happened, and people forget it.

The types of news that influence financial markets are:

1- Economic news Macro and interest rate news and anything issued by the Federal Reserve or the central banks of countries.

2- Political and geopolitical news

Wars – tensions – sanctions

Elections

Trade agreements

3- Company and asset news

Company profits

Mergers – acquisitions

Company bankruptcies

Updates on crypto projects – upgrading/downgrading network ratings

$USDT