Introduction
The Catalyst Behind Major Moves
Markets don’t move big without a reason.
Smart Money knows this.
They wait for the moments
when liquidity and volatility collide.
Economic Events are the spark
that turns structure into movement.
They shift sentiment,
manipulate liquidity,
and create the expansion phases
Smart Money prepares for
What Is an Economic Event?
The Definition:
📊 An Economic Event is any scheduled news release
that impacts currency strength, market volatility,
and institutional decision-making.
Common examples:
- FOMC
- CPI
- NFP
- Interest Rate Decisions
- GDP
- Unemployment Data
- PMI Releases
💬 In simple terms:
An Economic Event creates temporary chaos
that Smart Money uses to engineer liquidity.
📍 It’s not the event, it’s the reaction that matters.
Why Economic Events Matter
Economic events:
- Create sudden volatility
- Trigger liquidity sweeps
- Expose trapped retail orders
- Set the tone for the next session
- Kick off major displacement moves
💡 Smart Money doesn’t guess the outcome,
they trade the response.
How Traders Trade Economic Events
1️⃣ Avoid entering right at release time
2️⃣ Wait for the spike to take liquidity
3️⃣ Confirm displacement direction
4️⃣ Look for FVG or OB mitigation
5️⃣ Enter only after structure returns
📍 Smart traders don’t predict, they react intelligently.
Example
CPI Spike → Displacement
Minutes before CPI:
price is flat, liquidity builds above and below.
News drops,
instant spike takes both sides.
Retail panics.
Then displacement forms,
clean direction emerges,
imbalance opens,
the true move begins.
💬 The spike wasn’t the signal, the structure after it was.
The Do Nots
Common Mistakes Traders Make
❌ Trading the initial spike
❌ Over-leveraging during volatility
❌ Ignoring liquidity zones pre-news
❌ Assuming news equals trend
❌ Not journaling event patterns
💬 The spike is chaos, the move after is opportunity.
Final Thoughts
Economic Events aren’t meant to be feared,
they’re meant to be understood.
Smart Money waits for these moments
because they bring volatility, liquidity,
and opportunity together.
You don’t need to predict outcomes.
You need to read reactions.