Fed days have been notorious for being dead and then unleashing hell in the market. We get a lot of questions about whether or not the trading methods of W. D. Gann can predict extremes or direction brought on by news events. Well, take a look at the 5min chart of the ES S&P Futures below for June 17th and our predictions made on Skype that day well before the Fed announcement.
Well before the 1pm CST Fed announcement we were able to predict a bottom and top price for the ES swings that followed the announcement, accurate to within 1 point (see Skype snippets above). Our predicted main turn time of 1:10 PM CST was also a major turning point in the action.
News most commonly effects time strikes. Often we get a predicted turn time near a report or news event and we will stand aside. For instance, if there were no news event on the Fed day above, the main market turn would have been 1:10pm. However, with the event overshadowing everything, you still get the turn at 1:10 but it becomes a lesser event. Price, as you can see, is still subject to this natural law.
We teach these methods in our “MAGIC IN THE MARKETS” Course.
DISCLAIMER: The examples above are given as demonstrations of technical analysis and are not trading or investment advise.