[Trading Fed Days]

[Soultrader 12]

Quick video on Fed days. Some of you may already be familiar with playing Fed days from Huberts videos. In my opinion it is a valid way to play it. The first move is usually the correct move but impossible to get in without chasing and getting filled at the highs.

 

What I like to do is if the first move is up, I will time my entry on the long side by waiting for the second correction to finish. Remember try to use limit orders in this kind of market. Market orders will get you filled +-10 pts away from the trading price.

 

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Charts created by Tradestation

[notouch 10]

The whole day was a dream from a MP perspective. Open inside value area, test of VAH, fall to VAL, breakout of VAH, pullback to VAH then a take-off.

[Soultrader 12]

The whole day was a dream from a MP perspective. Open inside value area, test of VAH, fall to VAL, breakout of VAH, pullback to VAH then a take-off.

 

Yep And the second wave test came right at the VAH pivot. Gotta be quick to pull the trigger in this market though or else you will end up watching it go up and up. Also wide stops is recommended in my opinion.

[notouch 10]

The ideal trade would have been to place a limit order at the VAH (12385) as soon as the big breakout became obvious. Personally I was listening to a news squawk service and got in as soon as I heard "Fed removes tightening bias".

[Anonymous 11]

Nice video Soul.

 

What do you think about your share bar setting?

 

I notice a bullish dark (red) hammer pattern that is contianed within the range of a white (Green) WRB-the first breakout. Couple that with the fact that its at the Value Area High and wow.

 

Once stopped out, did you get back in?

[Soultrader 12]

Hi PivotProfiler,

 

I did scalp one more time on the way up. Personally the 1500v chart is something I found powerful but needs patience for actual triggers to develop. I feel its similar to a 5min on the YM but slightly more reliable in terms of candle patterns.

 

Sometimes I will take trades based on the charts... other times I trade off tape at key pivots without even looking at my price chart. I do miss seeing volume on the lower panel which is why I still have my 5min,15min, 30min charts but the volume candles do a good job really showing me the fight between the bulls and bears.