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 therefore hypothetical and not actual trades. They do not represent actual account results nor include the entirety of all predictions we make.