Day after FOMC Announcement with an opening Gap Down

07/30/2020 09:01 AM - By Brian Casto
We are testing a rare day when there is a Down Gap following a strong day on an FOMC Announcement.  Overnight selling has pushed Future Indices lower.  The day likely will end weaker as illustrated with both T-Scores and Win Rates having negative values and where Average Losses exceed Average Wins.  See below for the setup and watch the video.

Opening Gap Direction - Down

Market Status - Following the FOMC announcement yesterday, we pushed higher to the close.  Overnight trading has given up most of those gains.

Instrument - ES, NQ, YM, RTY

Trading SetUp - Intraday Open with at Gap of at least 50% of the 5 Day ATR

Market Trend - Above the 200 Day Moving Average (200MA) 

Trade Type - Long

Entry - 9:30 am ET (Market Open)

Exit - 4:15 pm ET (Market Close)

Brian Casto