Headlines impact price action, and are artificial catalysts (not organic catalysts). Their immediate effect on prices is often retraced by at least 61.8%, and often 100% back through the price where the headline appeared.
Retracing only 38.2% before extending in the reaction’s direction can then identify a specific target.
Afternoon headlines that were not scheduled like an economic report can extend their reaction through the close.
Whether the headline encouraged or went against the market’s natural behavior, the immediate reaction usually stops organic sponsorship from getting involved until the retrace is completed.
This setup has occurred on the following dates:
- 06-03-21
- 7-13-21
- 08-02-21
- 08-10-21
- 08-11-21
- 09-09-21
- 11-10-21
- 02-09-22
- 03-11-22
- 4-22-22
- 7-18-22
- 8-25-22
- 09-08-22
- 09-08-22
- 9-14-22
- 10-11-22
- 10-18-22
- 11-08-22
- 11-10-22
- 12-13-22
Study the setup’s historical occurrences here:
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