After a news print, spread recovery matters more than the spike
Posted: Sat Oct 31, 2026 8:02 am
Most scalpers focus on the spike after a major release. The more useful number is how long the spread takes to come back to normal. On a major pair the spread might go from 0.6 to 3 or 4 pips in the first seconds, then settle gradually, with tick rate roughly following the same curve. On a thin cross it can take far longer.
Entries during the decay phase carry a hidden cost. Entering when the spread is still 1.5 pips and the normal level is 0.6 means starting the trade about a pip behind, and any target under five pips is mostly paying that back. Plenty of post-news scalps look good on the move and bad on the account statement for exactly this reason.
Try recording it. For the next several releases on your pair, log the spread every few seconds for five minutes after the release. Mark the time at which the spread first falls within 30 percent of its pre-news level. That gives a pair-specific waiting time instead of a guess.
Once the data exists, build the rule around it: no entries until spread is back inside a set band, regardless of how clean the setup looks.
How many seconds or minutes did your pair take to normalise after the last big release?
Entries during the decay phase carry a hidden cost. Entering when the spread is still 1.5 pips and the normal level is 0.6 means starting the trade about a pip behind, and any target under five pips is mostly paying that back. Plenty of post-news scalps look good on the move and bad on the account statement for exactly this reason.
Try recording it. For the next several releases on your pair, log the spread every few seconds for five minutes after the release. Mark the time at which the spread first falls within 30 percent of its pre-news level. That gives a pair-specific waiting time instead of a guess.
Once the data exists, build the rule around it: no entries until spread is back inside a set band, regardless of how clean the setup looks.
How many seconds or minutes did your pair take to normalise after the last big release?