Last week, there was no question that the fed chair Powell's speech was full-on hawkish. As more and more economists/journalists and traders interpreted the event, the prices of many financial instruments like indices, stocks, and Forex pairs saw extraordinary volume and volatility. Holding off on trading until after the speech on Friday morning was a huge part of this strategy. If you did have positions during that time, then you already probably saw the total volatility and volume that was observed and executed in the markets during Friday or you probably read a newspaper or watched the news after. The price moved for most instruments up and down in both directions by many pips. Only after the speech when the markets decided on the direction of the price, and that's when the trade was executed. So here's the breakdown:
-August 25, 2022
-30 min timeframe
-Pair: NZDUSD
-Powell's Speech, was extremely hawkish
-30 min closed after below 200 DEMA as well as Supertrend Support
-Waited until price touched at least 200 DEMA ideally Supertrend Support
-Price touched 200 DEMA, placed sell stops below the previous candle low
-Moved S/L to B/E at the nearest level of support. Risk-free trade.
-Closed some of the positions so far and hodling the rest.
-August 25, 2022
-30 min timeframe
-Pair: NZDUSD
-Powell's Speech, was extremely hawkish
-30 min closed after below 200 DEMA as well as Supertrend Support
-Waited until price touched at least 200 DEMA ideally Supertrend Support
-Price touched 200 DEMA, placed sell stops below the previous candle low
-Moved S/L to B/E at the nearest level of support. Risk-free trade.
-Closed some of the positions so far and hodling the rest.