Whats good guys? Currently at a service station, had to take a pit stop as I have a 3 hour journey ahead, I thought I would give you guys the heads up as to what may occur going into tomorrow.
The images attached are the zones of importance that we need to be aware of going into FOMC tomorrow. Frankly, the markets will be pretty muted so exploiting any trades this evening and going into tomorrow might be a tricky scenario to be in.
From 1:15Pm GMT we have news for the US…So its going to be a very volatile session tomorrow.
The image above shows you that you have ADP Employment change then at 3:00PM you have ISM manufacturing index. Then the FOMC at 7PM.
If you choose to trade after each news play prior to FOMC, cool. You know the risks. Don’t be the guy/gal that says “i knew I should not have traded” – There are some of you that are comfortable trading news. You know what to do.
The first chart shows you the asian sessions that are clear points of interest that the news plays could be attacking going into tomorrow’s news.
In order to determine if price will go towards these zones you want to use the emas on the 5m time frame to see if they can sustain momentum towards these zones. Tomorrow mornings update will include the volume profile for this range between the asian sessions so we can establish which zones they are likely to hit once the news comes out.
The terms PASH (Previous Asian Session High) PASL (Previous Asian Session Low)
The second chart shows you a structure we are likely to see that we can exploit, ONCE and ONLY once the data is out and Powell has stopped talking during the FOMC.
If you go back in the charts you will see that during FOMC price tends to follow this sharp move up then sharp move down then a slow continued move in the desired direction.
The template above: PROCEED WITH CAUTION: The idea is that if you see a green vector candle appearing, due to the nature of volatility we would assume it would get recovered because that is what the MM is trying to do. He is trying to manipulate traders in to a direction and throwing them off.
The template is a way to get you to be aware of where trading opportunities could occur, again proceed with caution with this one, its more for the advanced trader of the hybrid and those who are confident in their risk management. For the new guy, try and see how the template appears in real-time and go back once the madness is over and see where you could have exploited trade opportunities.
The third chart is GBPUSD- I have building shorts in GBPUSD on Ctrader. I started on Sunday night when we completed the break down of the assets and we made reference to EURO being in a peak formation with the idea we expected euro to go lower.
Now GBPUSD has strikes happening which is going to cause a few disruptions and this is what i believe will start bringing GBPUSD down to start the peak formation drop to the down side. Will keep you guys posted on how this plays out as i will be holding this through FOMC however i am using small leverage so i dont need to worry about getting stopped out.
DXY – for the first time in a while, dxy ha managed to break higher and ended up reversing those gains. Yet the red vector candle in the charts is giving me a clue that they could be coming back towards this zone coming into tomorrow. Dxy will start moving more tomorrow as this will truly give us the idea that investors will start turning to cash if they truly think the economy or risk on is not the strategy to employ.
NASDAQ – From yesterdays update, notice how nasdaq has returned towards the boxed area where an FTD play could be on the cards.
Whats is alarming is Stocks across the board have none stop been rising. Is it bull trap?
Tomorrow is going to establish exactly what the MM has in store for us.
Tomorrow mornings update will include the POCs and the Vwaps for Nasdaq SP500 and US 300 and this will give us insight if they do decided to come back towards those zones.
We ideally want asia to bring some volatility so that coming into the morning we have zones we can trade into similar to what US30 did last week when it had moved away from its daily open with no test to ending up coming straight back to it.
Hyblock images are below.
I will check in with you all tomorrow.
Mad Love
T
