FOMC Trading Strategy; Beware the Traps!

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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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Economic News:
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.
Joseph James, and United Business Servicing, Inc. are not registered investment or trading advisers. The services and content provided by and United Business Servicing, Inc. are for educational purposes only, and should not be considered investment advice in any way. U.S. Government Required Disclaimer – Commodity Futures Trading Commission. Futures and Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. cftc 4.41 These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or-over-compensated for the impact, if any, of certain market factors, such as liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.


Joseph James says:

Remember, the key to trading the FOMC Announcement is "early in, early out" so get to your desk early, find the best enties using my plan, and get the heck out before lunch!

pump illusion says:

All I can say is wow,you know your charts.Took what I've learned just from watching your nightly news letter and applied it to my own trading and boom! your amazing Joseph,hope to trade with you soon.

Emil Hristov says:

This morning I opened 30x long position right before the run for gbp-usd and also 30x short for eur-gbp ….. beautiful catch. I manage to sit on my hands for several hours and watch them roll … At some point i decide to start reversing them and this was the end :j high speed bots eat me alive in les then 1 hour 🙂

Alazar Mesfen says:

thanks alot, your videos are great and informative, keep it coming. just keep doing the recaps, your channel is filled with the other stuff.

Gabriel says:

Thanks great info 👍 grenade day got it . I'll be standing on yhe sidelines thanks for the advice

Jason Siudzinski says:

I'm a brake even trader

J Sixx says:

FOMC is the most predictable event we can utilize. No change!

J Sixx says:

And Friday quadruple witching?

Ody Change says:

Apparently vaccine has minor side effects. I hope that doesn’t turn into bear market.

Elle says:

Thank you so much 🙂 You're so good…stop loss is still my biggest scratch head area. I have used the ATR and maybe it's just time that will teach me…but it's a tough one getting it right. I still have times that I get stopped out and then it reverses…grrrrr 🙂

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