Fed Day Advice.

[brownsfan019]

	Quote:	CandleWhisperer
	Interesting. I guess that has more to do with one's level of experience than the type of day itself.

This is the only reason why I suggest to stay away. This was a great trading day all around and if you knew what to expect in terms of swings, etc. then it was a great day to be a trader.

But for someone brand new that's NEVER traded a fed event, I would watch and learn.

[torero]

	Quote:	CandleWhisperer
	I am kind of surprised that DB, while not a VSA trader but a PV trader, would say stay away. I guess that has more to do with one's level of experience than the type of day itself. I also know that the WRB & Long Shadow guys expect major changes in supply/demand to show up on or around News releases. Again it is not about trading the news event. It's about understanding the possible change in supply/demand the BBs create because of the news event. One might goes as far as to say, create with the help of the news event.

The problem with Fed news is that levels are general ignored because the herd is just dumping everything and anything onto the market. Plus the fact that no one seems to have control long enough in directing traffic at fast speed, seems more a gamble than systematic trading. I think we all a certain amount of control in price action but these times there doesn´t seem to be one minute of control at all.

[CandleWhisperer]

	Quote:	DbPhoenix
	After twenty years at this, I no longer have anything to prove. But those who want to play have my best wishes. Or condolences, as the case may be.

you misunderstand. I did not mean your experience, I meant other traders. But I did mean I would of thought you found value in trading around such events.

[CandleWhisperer]

	Quote:	torero
	The problem with Fed news is that levels are general ignored because the herd is just dumping everything and anything onto the market. Plus the fact that no one seems to have control long enough in directing traffic at fast speed, seems more a gamble than systematic trading. I think we all a certain amount of control in price action but these times there doesn´t seem to be one minute of control at all.

At the heart of VSA is the idea that markets are manipulated. This manipulation is especially evident (still hidden to the masses, or herd) is during news releases like a fed day. The high volume from the herd and uninformed institutions creates the backdrop for the BBs to dump their positions or load up on them.

If you believe this and trade via VSA, it makes no sense to say "don't trade on a news event like the fed day". It is the very type of day where you should be trading.

That is not to say that one should not be careful or try and front run the news. To be sure, one should be on the sidelines during the release itself and look to play the reaction to the news or the reaction to the reaction.

Simply, important changes in the supply/demand dynamic tend to occur around these news events. Traders who look at supply/demand really should be looking to trade therefore.

[torero]

That I agree on. The problem is that it moves too fast to analyze rationally while the emotions are peaking watching it move. During slower movements, it´s great, but during fast moves like these, even experienced traders have to be wary. I think at least 30 minutes before moving in is reasonable, not when it explodes on the mark of the announcement.

[CandleWhisperer]

	Quote:	torero
	That I agree on. The problem is that it moves too fast to analyze rationally while the emotions are peaking watching it move. During slower movements, it´s great, but during fast moves like these, even experienced traders have to be wary. I think at least 30 minutes before moving in is reasonable, not when it explodes on the mark of the announcement.

Yes. One should let the BBs do what it is they are going to do: dump supply or load up (demand). Trying to be in the market while they are doing this is very dangerous. This is especially true for those who trade spot forex with its requotes and widened spreads. But alas, that says more about the market traded in this environment, than about trading a market in this environment.

[torero]

There is a way to do but it has to be Non-dealing desk in order to make your percentage of success higher. The great thing about it the news is that once, it decides on a direction, it's a nice long ride. You just have to be patient and wait for the entry.

[trumpeter]

Interest rate was unchanged.
With a neutral stance, this is like
balancing a marble on a pinhead.

Just sit back and watch the mayhem.

[Sledge]

Words of advice:
Professional Traders (I'm talking the Big Boys and Girls whose pips are worth THOUSANDS of Dollars and are responsible to manage others money) tidy up their books and sit tight during the release of Fed News- GENERALLY, not looking to add-in or scale out at that time...

.....why in the world would a retail trader attempt to do so unless he/she is very seasoned and is looking for a quick in and out?