Some traders believe that news traders do not use charts — thinking that if you are trading based on economic events, central bank announcements, or breaking news, you can ignore technical analysis altogether. However, even news traders use charts to time entries, manage risk, and find confirmation. While news drives the underlying market direction, charts remain essential tools for executing smart, disciplined trades.

Let’s explore why news traders rely on charts, how they integrate fundamentals with technicals, and what separates successful news trading from reckless gambling.

Why People Think News Traders Ignore Charts

This misconception arises because:

• Focus on economic reports: News traders prioritise events like Non-Farm Payrolls, inflation data, or central bank decisions, leading to the assumption that charts are secondary.
• Perception of speed: Some believe news trading is purely about fast reactions, leaving no time for chart analysis.
• Confusion with “pure fundamentalists”: Investors focused on long-term macroeconomics may care little about short-term charts — but short-term news traders are different.
• Media portrayals: News outlets often show traders watching news tickers, not charts, reinforcing the image of news-only decision-making.

In truth, smart news trading always combines news awareness with technical precision.

How News Traders Use Charts Effectively

Professional news traders use charts to:

• Identify key support and resistance levels: Important price zones help determine where reactions to news might occur.
• Spot breakout or rejection patterns: News can trigger sharp moves — charts help visualise whether a breakout is real or a fakeout.
• Manage risk: Setting logical stop-loss and take-profit levels based on recent highs, lows, or technical structures.
• Confirm sentiment shifts: If bullish news arrives but the price fails to break higher resistance, it signals caution.
• Anticipate volatility zones: Understanding how previous news events affected price volatility helps prepare for sudden moves.

Charts are a critical part of news traders’ preparation and execution.

Why Combining News and Charts Is So Powerful

Trading news with technical analysis offers advantages like:

• Better entries: Waiting for chart confirmation after news avoids jumping in blindly on emotional reactions.
• Clear exits: Charts provide technical areas to lock profits or cut losses, improving discipline.
• Risk control: Technical levels help size trades properly and avoid overexposure during wild news moves.
• Reduced emotional trading: Using structured technical analysis reduces the temptation to overreact to headlines.

News triggers movement — charts guide execution.

Examples of News Trading with Charts

Examples of how professional news traders use charts include:

• Non-Farm Payrolls (NFP): Traders might mark pre-news highs and lows and trade breakouts or rejections based on post-news price action.
• Interest Rate Decisions: After a central bank raises rates, traders may wait for pullbacks to key Fibonacci retracement levels before entering.
• Inflation Releases (CPI): Strong inflation data could trigger bullish moves — but traders watch chart structures like trendlines or moving averages to validate the trend.

Timing is critical — and charts provide the roadmap.

Common Mistakes News Traders Make Without Charts

Traders who ignore charts often:

• Enter impulsively: Jumping in the moment news breaks, only to get trapped in reversals or fakeouts.
• Misjudge volatility: Not recognising areas where price typically whipsaws after major news.
• Overleverage: Risking too much because they underestimate technical resistance or support zones.
• Fail to exit properly: Holding onto trades without recognising technical signs of exhaustion.

Successful news trading is strategic, not emotional.

Best Practices for Combining News and Charts

To succeed at news trading:

• Prepare key levels in advance: Mark important support, resistance, and psychological levels before major events.
• Use pending orders wisely: Place buy or sell stops around critical breakout points to catch moves with control.
• Wait for confirmation: Let initial volatility settle before entering unless you have strong breakout setups.
• Manage risk tightly: News events can cause sudden spikes — small position sizes and firm stop-losses are essential.

Smart preparation beats emotional reaction every time.

Conclusion: News Traders Absolutely Use Charts

In conclusion, news traders absolutely use charts — and ignoring them is a recipe for unnecessary risk and poor execution. While fundamental news triggers market moves, charts provide the structure, timing, and discipline needed to trade those moves effectively. Successful news traders prepare thoroughly, combine fundamental insights with technical analysis, and maintain strict risk controls to navigate volatile market conditions safely.

If you want to learn how to master trading the news with precision, strategy, and professional techniques, explore our Trading Courses and start building the skills that combine the best of both fundamentals and technicals today.