how do you trade FOMC | Forex Factory

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how do you trade FOMC

  • #1
  • First Post: May 2, 2018 9:15am May 2, 2018 9:15am
how do you trade FOMC?
  • #2
  • May 2, 2018 9:36am May 2, 2018 9:36am
do you have read the statement at all i see there 25 pages long


do you just follow the price movement
  • #3
  • May 3, 2018 9:15am May 3, 2018 9:15am
There isn't a direct correlation in the initial move with the news. For the initial move, it's better to base your trade on the "price action" bc the news may be built in to the price already, or not. The news usually confirms movements, not the other way around after the initial movement. Either bc the market already knew the direction it wanted to go, or it the initial movement traders liked their move and stayed in.
  • #4
  • May 4, 2018 8:09am May 4, 2018 8:09am
I don't trade it, I just wait for the drama to end and then resume trading.
  • #5
  • May 4, 2018 2:55pm May 4, 2018 2:55pm
Quoting crtfyd
There isn't a direct correlation in the initial move with the news. For the initial move, it's better to base your trade on the "price action" bc the news may be built in to the price already, or not. The news usually confirms movements, not the other way around after the initial movement. Either bc the market already knew the direction it wanted to go, or it the initial movement traders liked their move and stayed in.
I agree with you there
News trading is not for everyone stick to technicals. If you are good with your technicals you don't always have to worry about all these news.
I personally do not recommend news trading it involves emotions. you have no clue what really is gonna happen, It like gambling. look today (04 may 2018) the NFP report was worse than expected but still the dollar was strong
"Our favorite holding period is forever." Warren Buffett
  • #6
  • May 5, 2018 3:53am May 5, 2018 3:53am
Quoting mlawson71
I don't trade it, I just wait for the drama to end and then resume trading.

Same condition I have in my trading .
  • #7
  • May 14, 2018 2:33am May 14, 2018 2:33am
Trading FOMC is usually not worth the risk. Just wait for a good trade entry using your method and let deep pockets trade the FOMC.
  • #8
  • May 14, 2018 6:45am May 14, 2018 6:45am
Quoting Cranium
Trading FOMC is usually not worth the risk. Just wait for a good trade entry using your method and let deep pockets trade the FOMC.
I apply approach to any and all major news events. I have no desire to enter the market when the big fish are hunting.
  • #9
  • May 15, 2018 6:58am May 15, 2018 6:58am
Quoting bill1985
how do you trade FOMC?
Till now, I just close all of my running trades before this kind of unpredictable news event!
  • #10
  • May 15, 2018 8:12am May 15, 2018 8:12am
There are two ways I trade FOMC. The first and one of the most reliable if it triggers is this: as soon as the statement is released and price jumps in one direction, I place a pending order at the pre-release level anticipating the price to reverse. And when it reverses and triggers the pending order the probability of a winning trade are fairly high. But you have to place the order very quickly because some times the reversal takes a fraction of a second.

My second strategy is, if price takes one direction without reversing I enter in the same direction after M5 or M15 candle closes.
  • #11
  • May 15, 2018 8:29am May 15, 2018 8:29am
Quoting johNal
There are two ways I trade FOMC. The first and one of the most reliable if it triggers is this: as soon as the statement is released and price jumps in one direction, I place a pending order at the pre-release level anticipating the price to reverse. And when it reverses and triggers the pending order the probability of a winning trade are fairly high. But you have to place the order very quickly because some times the reversal takes a fraction of a second. My second strategy is, if price takes one direction without reversing I enter in the same...
I deeply admire people who can do that quickly and calmly, I just panic and mess up, so avoid trading that event altogether.
  • #12
  • May 15, 2018 8:30am May 15, 2018 8:30am
Quoting johNal
There are two ways I trade FOMC. The first and one of the most reliable if it triggers is this: as soon as the statement is released and price jumps in one direction, I place a pending order at the pre-release level anticipating the price to reverse. And when it reverses and triggers the pending order the probability of a winning trade are fairly high. But you have to place the order very quickly because some times the reversal takes a fraction of a second. My second strategy is, if price takes one direction without reversing I enter in the same...
I deeply admire people like you who can do that quickly and calmly, I just panic and mess up, so avoid trading that event altogether.
  • #13
  • May 29, 2018 4:44am May 29, 2018 4:44am
right now i don't trade it , even though once a time i was dependable on this event particularly for when news trading.
  • #14
  • Jun 4, 2018 4:20am Jun 4, 2018 4:20am
Quoting AdamCrist
right now i don't trade it , even though once a time i was dependable on this event particularly for when news trading.
You are right. Just like NFP, it no longer has the impact it used to have. Actually it is worse than FOMC
  • #15
  • Jun 6, 2018 8:48pm Jun 6, 2018 8:48pm
Follow Price action and watch on the movement of price for few FOMC. Learn how you can analyze the event.
  • #16
  • Jun 15, 2018 3:17am Jun 15, 2018 3:17am
some people use ea for news trap but its better to avoid news probably
  • #17
  • Jun 20, 2018 9:16pm Jun 20, 2018 9:16pm
Hedge and in the first minute if the market doesn't move. Get out. Regardless if you win or lose. How close you hedge depends on your risk appetite.
You're going to pay a price for every bloody thing you do and don't do
  • #18
  • Jun 27, 2018 9:46am Jun 27, 2018 9:46am
Quoting lordadry
some people use ea for news trap but its better to avoid news probably
How does an EA help with news trading, that's when the market is at its most erratic and unpredictable?
  • #19
  • Jun 27, 2018 3:36pm Jun 27, 2018 3:36pm
Quoting johNal
{quote} You are right. Just like NFP, it no longer has the impact it used to have. Actually it is worse than FOMC
This is true. I remember the old days of FOMC when EU would regularly shift 200 - 300 pips+. Same for NFP which was a pretty savage event from memory.

I can't remember the last decent one of either.
  • #20
  • Jun 28, 2018 5:05am Jun 28, 2018 5:05am
I have seen few traders who book handsome profits at the time of any major event. But i personally avoid news trading.
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