June 30, '04. Trade an FOMC rate change with the Probe pattern...


Like a game of baseball, trading on the day of an FOMC interest rate announcement can require patience, then suddenly all hell breaks lose. Many traders lose money positioining trades around news announcements. But using the rules of the Probe pattern can reap great rewards with very limited risk. The pattern appeared after the FOMC announcement today in every mini-index contract, offering about 8 pts potential in the ES, 10 in the NQ and about 50 in the mini-Dow. The rules for this trade pattern and all those found in this blog can be found in the trading course Pivots, Patterns and Self Recognition. (click image to enlarge)