# 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.

Source: https://tradeecho.com/docs/features/newsedge/impact-levels (updated 2026-03-15)

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.

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## 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.

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## 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.

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## 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.

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## Quick Reference

| Level | Move | Timeframe | Action |
|-------|------|-----------|--------|
| High | 2-10% | Minutes to hours | Trade immediately |
| Medium | 1-5% | Hours to days | Swing trade, confirm with flow |
| Low | Under 1% | Days to none | Context only, skip for trades |

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## Filter Strategy by Trading Style

| Style | Primary Filter | Secondary |
|-------|----------------|-----------|
| Day trading | High only | Earnings Focus, Market Moving |
| Swing trading | High + Medium | Analyst Activity, Corporate Actions |
| Biotech focus | High + Biotech Catalyst | FDA-specific |
| Position trading | All levels | Low for thesis building |

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## Next Steps

- [Quick Start](https://tradeecho.com/docs/features/newsedge/quick-start) - Get started with NewsEdge
- [Trading Catalysts](https://tradeecho.com/docs/features/newsedge/trading-catalysts) - Five strategies using impact levels