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Quantitative9 min readJun 13, 2026
Trading After the News: An Acceptance Model
Why the candle after the spike matters more than the spike. Defining 'acceptance' objectively and backtesting it across 18 months of CPI and NFP releases.
Defining acceptance
Acceptance = two consecutive M15 closes beyond the pre-news range extreme, with the second candle's low (for longs) holding above the extreme.
Results across 38 releases
Continuation trades taken only after acceptance formed reached a 2R target 61% of the time. Trades taken inside the news candle itself — the control group — hit 2R just 33% of the time with triple the average adverse excursion.
Rules derived
- No orders in the book during tier-1 releases.
- No entries for 15 minutes after the print, minimum.
- Entry only on acceptance as defined above; skip the day if it never forms.