FOMC Day

October 24, 2006 by Trader Rich

I looked into the past at the price action 12-24 hours prior to an FOMC release and as expected, consolidation appears more times than not. What this means is that I could very well be sidelined until Thursday because I won't attempt to trade the FOMC tomorrow. Of course, I could change my mind if the GBP/USD continues its ascent.

I'm feeling good about sticking to the H-system even with the loss today. The first thing I did when I got home from work today was open up my charts to look for a possible filters that I may be able to incorporate. One such filter that looks promising is divergence between price and MACD. I've heard that in general divergence fails more than it succeeds but my experiences with it have shown that as long as you don't use it as a standalone system, it could be useful.

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