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Old 03-18-2008, 07:28 PM
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Re: Fed Day Advice.

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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.

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