September 20, 2011
- in Uncategorized by schooloftrade
FOMC Day Begins, Traders Prepare for Housing Starts
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The James’ Report: Professional Resources for Professional Traders
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Today’s Economic News:
We know today is the start of the FOMC Meeting. It begins today, will end tomorrow, and we know that traders will be ‘hoping’ for news coming out of the Fed during this time.
We then have 830am news Housing Starts.
Go through the 930am US market open and there is no news after that this morning.
I will assume that with no news late this morning, and with the 215pm announcement from the FOMC Meeting tomorrow, we MAY see some lower volume after 11am today.
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Looking at the Charts:
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The Euro has three price structures we can use as our guide today:
· Price Wedge
· Inside Day
· Sideways Range
All three (3) of these have similar personality traits.
All three of these tell me to buy the lows and sell the highs, avoid the middle.
If price rises im selling at new highs first, and then buying pullbacks with new highs above the 1.3925.
Im selling as price rises with this price wedge and sideways range.
As price rises we then turn into an outside day above 1.3711 and we then can more aggressively start looking for pullbacks.
We need to expect the fake-out breakout because of the price wedge.
If price trades sideways we need to be patient to test the highs or the lows of this range.
If price falls we want to buy at support. Buy the wedge lows, buy the PLOD, buy the support levels below us.
If price breaks through the the PLOD we then turn OUTSIDE day and we start looking for sellers.
Selling retracements below the PLOD, however, be suspicious of those fake-out breakouts…because of the price wedge.
Plan of attack is simple: buying as price falls, selling as price rises, and avoid the middle of this range around the 1.3640 area.
Crude Oil next!
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