When a major news announcement is about to be released financial markets typically consolidate. Ranges become smaller, volume dries up, and volatility falls. Why? Simply because few traders want to take financial risk prior to a major news event. This article will give you some general tips on trading just before a major news announcement. The greater the risk of the event the less direction you can see prior to the meeting. So, a hotly anticipated central bank meeting will see more of a price ‘freeze’ (period of smaller range activity) than a lower-tier economic data point that the market is not looking at. The ... (full story)