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“Buy the rumor, sell the news” was a term used among traders in the last century. Back then, it was profitable if applied to purchasing stock three weeks before earnings release news. A much more powerful principle is a valuable edge derived from this saying. Professionals know that news releases can turn the direction of a market. Consequently, these can be entry or exit points. While amateurs wait for a news release and are victims of their debating process of interpreting the news data, professionals only use the news release as a timing tool for their preplanned trade execution.
With news, volatility is typically increasing, and a larger volume of transactions is at play. For amateurs, data evaluation in a turmoiled market environment generally results in procrastination of execution, meaning no trading or chasing trades. Professionals find necessary liquidity to exit a trade or use volatility to fade moves on less risk for entries.
Last week’s invasion of Ukraine was no different. Only those prepared with a plan were able to position themselves in Bitcoin (BTC-USD).
Bitcoin, daily chart, the giveaway:
Crypto markets, daily charts as of February 28th, 2022. (Midas Touch Consulting and TheStandard.io)
A giveaway was a widespread larger supply zone throughout the crypto sector (green horizontal lines on the daily charts above), and preset buy entries in the crypto space were getting triggered. Inter-market relationships stack the odds of placing a successful trade.
Bitcoin, weekly chart, entry target zone within reach:
Bitcoin, weekly chart as of February 28th, 2022. (Midas Touch Consulting and TheStandard.io)
With our entry target range nearly reached (see our previous chartbook release), we were ready to act, knowing a possible larger time frame tuning point was a possibility.
You might argue that the price has not penetrated the entry zone. Still, at a closer look, you will identify that due to exuberant volume on…
