The Fed is expected to cut interest rates by 25 basis points. We won't guess the market reaction but indeed the most important thing is to prepare the trading plan.
In 4H chart, the demand and supply zone colored in green and red respectively are identified for establishing the strategy. There are 4 scenarios to open the position after the statement announcement followed by Powell's press conference later.
1. The price reaches the red zone but cannot break out, going to SELL 2. The price breaks out the red zone confirmed, going to BUY when pullback 3. The price reaches the green zone but cannot break out, going to BUY 4. The price breaks out the green zone confirmed, going to SELL when pullback
All the probabilities are ready if you are interested to open the position. Let's see and trade only with the plan.
Be Patient and Relax!
----------------------------
Enjoy the trading itself and you will be much better at it!
Thank you. This is TraderPig.
Comment
⋅
After the announcement and during the press conference, XAUUSD price was continuous going down and finally reached the demand zone colored in green. Obviously, it cannot be broken out, which means that the Scenarios 3 is the plan considering to BUY.
The Inside Bar was formed in the demand zone in the lower time frame and broken out upward finally. Considering to BUY (Buy Stop Order) once the price breakout, 1:1 profit and lost achieved and now shall take half of the profit, and the remaining for stop loss trailing.
Comment
⋅
Great! 3:1 profit and loss ratio achieved. Take another half of the profit and keep trailing.
We’re in the green zone. Are you looking for an open close 1hr or 4hr for confirmation to buy or go short in this zone?
TraderPig
⋅
@dlcallahan, Normally we will use the at least 1hr time frame for finding the entry and stop loss point. As the demand zone cannot be broken out, we consider to BUY in the plan.