Trading based on news (news, events that are known to definitely happen)
What will the price action be like?
When news will happen in the future is known, traders and sharks will buy/sell short before that news happens about a month before the event officially begins. And the selling starts slowly about a week before the news begins to be released.
For example:
1/Election event, everyone is sure that Mr. Trump will win, and Mr. Trump supports crypto, all coins related to MAGA, TRUMB, BTC increase in price. Recently BTC had a drop from 72xxx$ to 69xxx$, which means these people have started selling.
2/FED interest rate cut event. As you can see, the price often fluctuates strongly and goes down after the news is released even though it is known to be good news. The explanation is that those who trade based on news will sell everything regardless of whether the news is good.
What is the lesson learned? Before FED meetings regarding interest rate cuts, there is often a price drop (be ready to buy) until the news is released to sell.
Note: this strategy only applies to BTC. And the profit percentage only fluctuates from 7-20%. If you are not the type of person who waits, then you should not apply this.