FOMC Announcement Day can bring some volatility to the Futures Indices, with great sensitivity to the opening price location. When gapping up and exiting at the close, taking a Long approach will likely produce a Bearish result. A Gap Fade approach, targeting the prior day close, may work better. Check out the setup below and watch the video. Make your comments below.
Opening Gap Direction - Up
Market Status - Today is the FOMC announcement at 2pm. We are trading higher this morning as we approach the open
Instrument - ES, NQ, YM, RTY
Trading SetUp - Intraday Open & Gap Fill (Fade)
Market Trend - Above the 200 Day Moving Average (200MA)
Trade Type - Long & Fade (stop at 40% of the 5 Day ATR)
Entry - 9:30 am ET (Market Open)
Exit - 4:15 pm ET (Market Close)