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NewsEdge Impact Levels

Impact levels tell you how much a news item typically moves a stock. Use them to filter your feed and prioritize trades that match your risk and reward goals.

High Impact​

What Qualifies​

  • Earnings: Beats, misses, guidance raises or cuts
  • FDA: Approvals, rejections, advisory committee decisions
  • M&A: Major acquisitions, mergers, divestitures
  • CEO/Leadership: Executive changes, resignations, new appointments
  • Regulatory: SEC actions, antitrust rulings, policy changes

Expected Stock Moves​

2-10% in the first hours. Often more for biotech (FDA) or small caps (earnings).

Trading Implications​

  • Speed matters: Move within minutes of the alert
  • Direction is clear: Beat = up, miss = down, FDA approval = up, rejection = down
  • Options work: 20-50% moves in options on 5-10% stock moves
  • Risk: Gaps can be violent. Use stops. Size small on first reaction.

Medium Impact​

What Qualifies​

  • Analyst Activity: Upgrades, downgrades, price target changes, initiations
  • Guidance Updates: Mid-quarter or informal guidance changes
  • Partnerships: Major deals, collaborations, licensing
  • Product Launches: New product announcements, expansion into new markets

Expected Stock Moves​

1-5% over hours to days. Analyst upgrades often move 2-5% same day.

Trading Implications​

  • Swing window: You have more time than High impact
  • Confirm with flow: OptionFlow or Snapshot can validate analyst sentiment
  • Accumulation: Multiple upgrades on same stock = stronger signal
  • Risk: Single analyst downgrade can be noise. Look for consensus shifts.

Low Impact​

What Qualifies​

  • General Commentary: CEO interviews, industry roundtables
  • Research Reports: Non-analyst research, whitepapers
  • Industry Trends: Sector-wide news, macro commentary
  • Routine Filings: 10-K, 10-Q, 8-K without material events

Expected Stock Moves​

Under 1%. Often no immediate move.

Trading Implications​

  • Context only: Use for thesis building, not for immediate trades
  • Position sizing: Low impact rarely justifies a new position
  • Screening: Skim for tickers that might get High/Medium news later
  • Risk: Low impact news can create false signals. Don't trade on commentary alone.

Quick Reference​

LevelMoveTimeframeAction
High2-10%Minutes to hoursTrade immediately
Medium1-5%Hours to daysSwing trade, confirm with flow
LowUnder 1%Days to noneContext only, skip for trades

Filter Strategy by Trading Style​

StylePrimary FilterSecondary
Day tradingHigh onlyEarnings Focus, Market Moving
Swing tradingHigh + MediumAnalyst Activity, Corporate Actions
Biotech focusHigh + Biotech CatalystFDA-specific
Position tradingAll levelsLow for thesis building

Next Steps​