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Trades
Note the white circled MACD on 1H/4H before the morning, signifying that we have a bullish run coming today.
- Yellow circle: 1m opens up upward, and pulls back twice, to the 34, and then for a downwave. The wave comes with a 5m 21 test, and this becomes the first major move of the day.
- Orange circle: The 5m pulls down all the way below 0, before making a bullish engulfing 7J and multiple 1m bullish signals below 0 as well. However, this trade is optional, because the upcoming FOMC likely tests both upper and lower limits, and that is exactly what happened here today.
- After the FOMC comes out, the 5m low gets tested and the 1m makes a run below 0. Note the 5m MACD is running up the entire time leading into the news, so at the 1m bearish hammer that begins the reversal is good enough to get into the trade. Also note that the 5m wave comes with a 15m 34 test, and it is a standard setup that would have been fine if not for the FOMC re-test.