530 News Days come with a plethora of different contexts, and it can be complicated to keep it all in order.
To simplify, we are going to consider a few main categories of 530 News Days.
We can consider the main time frames stacks, the signals on the main time frames (including 1m) prior to the news, the size of the news spike, and more.
Full Same Stacked (5/15/1H/4H)
It may be an extremely shallow wave and fast test of the 21 at best. Just take it.
There may be a 5m 34 test later in the day but it is not guaranteed.
News Spikes with Stack
If 1H is not yet in a late trend phase, it’s simply looking to run the entire day. The priority is to locate a 1m pullback with a wave, along 5m 21/34 if possible.
On the other hand, if the 1H is late trend (wide EMAs and/or exit candles), or the news gets rejected hard right after the initial spike, it wants to exhaust from either the news release or a short term move after.
Then it will mountain/valley gradually the rest of the day to undo the lead up to the news.
Note that if the 4H MACD has crossed against the stack sharply, it will be a mountain/valley in the direction of the MACD.
Examples:
2023/11/15
2023/09/01: 4H MACD Crosses down against bull stack prior to news.
Exceptions:
2023/11/02: Despite even having a 15m bearish engulf to signify rejecting after the news spikes up, it rebounds off 15m 21 and ends up higher.
Decent sized spike (0-90 points)
If 1m has already had a wave pre-market, take entry off 34. A second wave may come later.
Spike is massive (100 points full candle)
Be extra patient.
Enter initially off 1m 34.
Then, get out once 5m comes back against signal line until the 34/wave.
There will likely be a 5m 34 test but it will take time because the EMAs will be wide for a long time.
If the 34 takes too long (basically comes at 0 line cross), wait for the 0 line cross and wave with the 15m 21 instead.
11/14/2023
News Spikes against Stack
This can happen when 15/1H/4H are showing divergence or reversal signals prior to the news.
If 15/1H/4H are overdue divergent and demand proper waves, it will be a choppy run against the stacks, ultimately ending further against the stacks.
The best way to enter is with a 5m 34 and then wave, taking H/L breaks each time. Aiming for a full 15m wave is ideal, so holding 5m wave is possible assuming 15/1H are going deep across 0 line against the original stack. This means that there may be no reason to exit the initial trade if it is taking the 15m across 0 for its wave.
However, if it spikes against the stack despite not requiring a major wave on 15/1H, there should be a 15m wave anyway, against the stack, and then valley/mountain reversal.
Aim to take the 15m wave play against the original stack, with 1m 34 after the open, and exit when 5m is exhausting. Take the valley/mountain reversal after, and hold until EOD.
2023/11/15
2023/02/03: Valleys but ends up dumping one more time to end the day.
Alternatively, if the 1H is on the opposite of the 0 line, expect some sideways volatile swings. Take traditional setups but don’t get greedy for full day runners.
2023/08/04
This is also the case with news that swings multiple times in the first 5 minutes. Expect sideways large swings, and aim for the EOD hold once 15m signals.
2023/02/14
Status of the TF prior to News
1m extended far past 0 line and coming back prior to news
This is when the 1m is pointed down after already being at +/- 5 or more on MACD. Anticipate a proper down wave before the trend continues.
Go long off 5m 34/5m wave with 1m sig candle after the open.
1m on opposite side of 0 line while fully same stacked
Look to enter off the 34 after the open rather than getting a wave.
The spike will carry it, it may pull back for a shallow wave, but it won’t probably will only be at the 34 after the open.