5 Patterns For FOMC Trading; Capitalize On Traps

By Joseph James of Sideways Markets

Head-Trader at SchoolOfTrade.com • Jul 28, 2020 at 10:18 PM EDT

We’re headed into the FOMC Announcement tomorrow afternoon, one of the biggest news events of July; our job is to get to our desks early for the best setups before things slow down into lunch.

Video Length: 00:46:47

We’re headed into the FOMC Announcement tomorrow afternoon, one of the biggest news events of July; our job is to get to our desks early for the best setups before things slow down into lunch…

Looking at the charts – balanced ranges will continue to play a role on Wednesday, and where there are ranges, there are a lot of trap opportunities to catch rookies trading breakouts – are you with me?Let’s get started…

E-Mini S&P Tries to Fill the GAP and Pendulum Swing…

E-Mini S&P is bearish and trying to break free of today’s trading-range; the strength of this recent move lower is a big clue, telling me to look for a buyer failure setup off the high of a new channel to complete another leg in the same direction…

Sell the High of the Hidden Channel using a Buyer-Failure Pattern
Sell the Bounce off a Developing Spike & Channel Going Lower
Buy the 123-Reversal into Hidden Channel Pullback on Strength

(Click on image to enlarge)

Crude Oil Back in the Middle of the Weekly Range…

Crude Oil is bearish and finished today’s session inside a range; the range will act as a magnet, and since the bears have control, my plan is to look for sell setups at resistance levels above the range using bull-traps and buyer failures…

Sell Above the Range using a Buyer-Failure Pattern
Sell the 2-Try Trap on Strength Before the Triangle Low
Buy the 123-Reversal on Strength for a Retest of today’s High

(Click on image to enlarge)

Gold Whips Around the Range Ahead of FOMC…

Gold is range-bound with a strong bull bias; the range will continue to act as a magnet until the bulls can show us proof, and in the meantime, I’ll be looking for sell setups using a “nested” failure pattern above the highs of the range…

Sell Above the Range using a Nested Buyer Failure Pattern
Buy the 2-Try Trap on Strength Before the High
Avoid the middle of the Range

(Click on image to enlarge)

Disclaimer:

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