# Strategy "Trading against the news"

Setting up the workspace:

Go to "Add Widget" and open the TradingView tab.

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FcqvOVELJEDxGzJgKPhdY%2Fimage.png?alt=media&#x26;token=0a3d2bc7-4210-4dc0-8213-840b0db62a68" alt=""><figcaption></figcaption></figure>

In the chart window that appears, select the instrument and the trading timeframe.

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FNPYbDxAen3I5o9S0ED3Y%2Fimage.png?alt=media&#x26;token=81bba686-db17-4ae2-8d49-859bb70eb0ab" alt=""><figcaption></figcaption></figure>

Open "1ex Indicators" and choose "News Sentiment."

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FlfGFK4n4DLgeGvqNwWZ4%2Fimage.png?alt=media&#x26;token=6b8ac6fb-747a-423a-9634-f694db77725f" alt=""><figcaption></figcaption></figure>

Adjust the settings (as shown in the photo below):

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FS7K5tE9tZYAtSQkFNn7C%2Fimage.png?alt=media&#x26;token=7d3e94d5-c82a-4851-8fcc-e4888da8910e" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**IMPORTANT!!!**

In the "Symbol" field, there are two options:

**"Crypto"** – the indicator will be based on all cryptocurrency market news.

**"BTC"** – the indicator will focus only on news related to the specific instrument selected in the TradingView chart.

In the "Period" field, you can set the time period for the news data. For optimal results, choose a period that is 20 to 60 times longer than your trading timeframe on the chart. A lower multiplier results in higher sensitivity, while a higher multiplier results in lower sensitivity.

**Example:** If the chart's timeframe is 5 minutes, set the news period to 4 hours (which equals 48 candles of 5 minutes each).
{% endhint %}

The indicator window will look like this:

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FbXlk93oylJjCFtSCNrSm%2Fimage.png?alt=media&#x26;token=0b8b74f6-36ea-4604-8901-d6e6c7b94e55" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Line Values:**

<mark style="color:green;">Green line</mark> - absolute number of positive news stories.&#x20;

<mark style="color:red;">Red line</mark> - absolute number of negative news stories.&#x20;

White line - absolute number of neutral news stories.
{% endhint %}

**Trading strategy description!!!!!**

Theory: When extremely positive or extremely negative news hits the market, it's often best to trade in the opposite direction. This is based on the principle that "smart money" usually moves against the crowd. Market overreactions to news can create opportunities for savvy traders to capitalize on price corrections as the initial emotional response fades and market sentiment stabilizes.

## Entry Points for a Trade

1. Look for peaks in positive news (<mark style="color:green;">green line</mark>) on the sentiment indicator and compare the distance between the negative news (<mark style="color:red;">red line</mark>).

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2Fn3wSjk2mywEfskht7Fpv%2Fimage.png?alt=media&#x26;token=cfb1c900-cafa-4ef9-aed1-3c383e5f582d" alt=""><figcaption></figcaption></figure>

2. Analyze and receive trading signals:

<mark style="color:green;">**Long Signal**</mark>**:** When the red line (negative news) reaches the same level as the green line (positive news) or even surpasses it.

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FUDPTOTzKVZenXVTYieQb%2Fimage.png?alt=media&#x26;token=c8485107-e92d-4826-9a05-a345bcca7c6d" alt=""><figcaption></figcaption></figure>

<mark style="color:red;">**Short Signal**</mark>**:** When the green line (positive news) is significantly above the red line (negative news).

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FKboCk6FtQK7pzMlsOcKZ%2Fimage.png?alt=media&#x26;token=7b77a257-de98-4922-b60a-cf2170f9c9e7" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
**IMPORTANT!**

There are a few nuances to consider with this strategy:

1. This approach works best over time, so it's crucial to **accumulate positions gradually**.
2. For better results, it's recommended to trade **without leverage** (or with minimal leverage) and **without stop-losses**.
3. Avoid entering trades at the same price levels, even if the indicator continues to signal.
4. It's generally **better to avoid signals** that occur during weekends.
   {% endhint %}

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2Fsmmq2iQDLLldzptCOfiA%2Fimage.png?alt=media&#x26;token=33bbbf06-f420-425b-8e6c-1fdcd6807b56" alt=""><figcaption></figcaption></figure>

## Exit points from the deal

**Option №1:**

Exit on Opposing Signal. Close the current position at the first opposing signal.

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2F1LfZQyxBI1s9lDr5WXf1%2Fimage.png?alt=media&#x26;token=a29736f1-5cfa-43b6-b9c3-4f2901bffb66" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
**Trading result over 10 days:** +17.11% (not considering leverage).
{% endhint %}

**Option №2:**

Select a significant (IMPORTANT: achievable) price level of support or resistance, and close trades at that level!

<figure><img src="https://50984263-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FxvSjYcSxDfAX6PVpWdgr%2Fuploads%2FfLqp30KveSoMi8s1bPou%2Fimage.png?alt=media&#x26;token=2476f729-798e-495f-ace6-d6c8d30f6cb0" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
**Trading result over 1.5 days:** +4.92% (not considering leverage).
{% endhint %}

**CONCLUSIONS:**

This strategy can be used either as a standalone method or as one of the filters within various trading strategies employed by traders.

{% hint style="danger" %}
**IMPORTANT!** Trading involves risks. The user is solely responsible for their actions or inactions when using the described trading strategy. The strategy and its description are for informational purposes only. The information provided here does not constitute personalized investment advice. News, articles, expert comments, research, forecasts, and other information are presented without considering any specific investment profile, and the financial instruments or operations mentioned may not align with the expected returns, investment horizon, or acceptable risk levels for any particular user. Company 1EX is not responsible for any potential losses resulting from trades based on the described strategy or investments in the financial instruments mentioned in this publication.
{% endhint %}