This will be quick, and incomplete ... I don't have time for an essay. Hope it helps.
Rule 1 - Only trade active, moving markets
Once you've mastered rule 1, move on to ...
Rule 2: - Look at the response, not the news.
My favourite quote is ... "The study of responses ... is an almost unerring guide to the technical position of the market." Richard Wyckoff said that a long time ago.
What it means (amongst other things*) is by all means look at the news, but check out how the market, the price action, is responding to the news. If the news is good for longs and the market (price) starts to move up, then you might want to go with it.
Or, maybe the news is good for longs and the market (price) won't go up ... then you'd wanna look at a short.
(*Its not only about response the news, data, events etc ... its also about responses to price movement ... but that's for another day)
