5 Ways to Trade FOMC Wednesday

What’s the best strategy for trading tomorrow’s FOMC Announcement?

With news coming in the afternoon, our focus will be the morning session, and with lots of trading-ranges on the charts tonight, we’ll be looking for failures and breakouts in our trade room tomorrow morning…

I’d love to buy a deep pullback on the Emini ES, short the expanding triangle highs on Gold, and trade the bear breakout to fill the weekend GAP on Crude Oil.  Are you ready?  Let’s go…

E-Mini Keys to Success:

• Bullish into a range, rotation off the high
• Bulls Want to buy support levels below the range or breakouts above
• Bears Want to sell breakouts above and sell reversals lower

Best Setups for Tomorrow: 

• [DOWN] – Nested Failure setups to Buy (or) 123-Reversal to sell
• [UP] – Breakout setups to Buy (or) Crown reversal to sell
• [SIDEWAYS] – Sit on hands, wait for a breakout, focus on failures

Crude Oil Keys to Success:

• Bullish into a range, then bearish into a range (last week’s range = magnet)
• Bulls Want to take control with a 123-Reversal
• Bears Want to sell resistance above the range or sell breakouts below

Best Setups for Tomorrow:

• [UP] – Failures to get short (or) Breakouts to get long
• [DOWN] – 2-try trap to sell (or) nested failure to sell
• [SIDEWAYS] – sit on hands, wait for a breakout

Gold Keys to Success:

• Bearish into a trading-range
• Bears Want to sell resistance levels above the range, or sell breakouts below it
• Bulls Want to buy a 123-Reversal going higher or a crown reversal at support below

Best Setups for Tomorrow:

• [UP] – Failure setups to sell (or) Breakout setups to buy
• [DOWN] – breakout setups to sell (or) reversal setups to buy
• [SIDEWAYS] – sit on hands, wait to short the pop!