FOMC Trading Strategy; Beware the Traps!
We’re headed into the FOMC Announcement tomorrow afternoon, which means tomorrow morning will be one of the more challenging days of this Quad-Witching week…
You know me, I’m not going to let a little news event stop us from finding some reliable entries, but I’ll warn you, today’s charts are littered with traps, so we best be prepared for battle – are you with me? Let’s go!
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E-Mini S&P is bullish into a trading-range, which tells me to look for buy setups using failure patterns at key support levels below the range on Wednesday…
The challenge, however, is the strength of the last move lower, which throws us a curveball, and tells me to get creative to find the right entry setup tomorrow morning…
Crude Oil is bullish after a 123-breakout sent prices running higher, but we finish today’s session right on top of last week’s high, not a very good place to start buying…
Knowing this, I’m going to wait for a pullback to free up some space, and I have my eyes on the low of a new hidden channel to get long…
Gold is bearish and trading just above a trading-range, which would normally tell me to get short with a buyer failure pattern, but there’s one big problem…
The last move higher was very strong, leaving the “open-loop” for the bulls, and I need to wait for them to “close that loop” before I can get serious about getting short…
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Please remember that economic news, both scheduled and un-scheduled will increase volatility and decrease liquidity in the market in the short-term, which causes price-action to react inconsistently with the levels of support and resistance mentioned in this video. Trading during economic news reports is dangerous and highly discouraged, no matter what your level of experience.
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