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Old 10-27-2006, 12:51 PM
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Re: Trading Fed News: Methodologies

You probably know I'm a S/R, trendlines, and patterns trader. I normally don't stick around for the afternoon to trade, so on Fed news I'm there once in a while. But in these 2 examples, I would have traded like this.





As you can see, the moment leading up to the Fed news, the chart has already said alot: moving up to resistance and drop below the support that became resistance. On the next rally, I'd sell and my stop would have been above the resistance lines. The top chart, the short was 45 minutes after the announcement. The 2nd short was 1 hour later. By that time the volume would have settled to find real direction by then. Of course 20/20 hindsight it's great but trading it is a different picture. I always look for higher high/higher low for longs and lower high/lower low for shorts.


Last edited by torero; 10-27-2006 at 01:05 PM.
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