Danger Zones

Identify news and high-volatility periods to filter the riskiest trades out of your signal list. At times like these, price can move abruptly and invalidate technical analysis.

When to use it

Danger zones help protect your entries from the moments when the market tends to move unpredictably, such as news times and high-volatility periods. They complement the news filter.

In practice, danger zones work like a map of sensitive times. You load the list, see where the riskiest moments are and decide whether to remove, reduce or simply watch those entries more closely. This simple routine, repeated every day, helps avoid surprises and keeps risk management more predictable, especially on days with many economic releases.

How to use

1. Load your signal list.
2. See the risk periods identified.
3. Remove or review the entries that fall in those zones.

Best practices

• Load your list and first review the entries that fall in the flagged zones.
• Reduce position size or avoid trading at those times.
• Use it together with the day's economic calendar.
• Compare the list's performance with and without danger zones in the backtest.

Common mistakes

• Ignoring a danger zone because the strategy was doing well.
• Using the list in another timezone and not noticing the zones moved.
• Treating the danger zone as a guarantee that there is no risk outside it.

Frequently asked questions

Why avoid news?

Major economic releases cause sharp moves that often ignore support, resistance and patterns.

Does this replace the news filter?

They are complementary tools. Use both to clean the list before analysis.

Related tools

• News filter
• Signal backtest
• Trend filter