Kardec Trader explains why trading around scheduled Fed events like Powell speeches is risky. When events are pending, price action is random and opportunities disappear. After the news hits and the market digests it, tradable setups finally emerge.
So when a lot of people think, oh, man, this week we have Powell speaking, we're going to have so much opportunity. My concept to that is the opposite. Now, when there's so much events happening, the opportunity window goes down because price becomes more random and subjective to what may possibly happen, in my opinion. Now, when the events are done now, price can essentially reveal its hand after the news. After the news. Interesting. Or let's say when Powell is going to speak in a couple hours at 2pm Eastern time, we're going to see a flat action because market is waiting for him. Now, when the market is done, he speaks, everything's done. Now we start seeing moves formulated, and then from there, the opportunity goes higher, news goes lower, and now we can start formulating a play.
