how do you trade FOMC?
- | Joined May 2013 | Status: Conscious Incompetence | 127 Posts
You're going to pay a price for every bloody thing you do and don't do
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DislikedThere 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.Ignored
DislikedTrading FOMC is usually not worth the risk. Just wait for a good trade entry using your method and let deep pockets trade the FOMC.Ignored
DislikedThere 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...Ignored
DislikedThere 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...Ignored
Dislikedsome people use ea for news trap but its better to avoid news probablyIgnored
Disliked{quote} You are right. Just like NFP, it no longer has the impact it used to have. Actually it is worse than FOMCIgnored