This YouTube tutorial by Kardec Trader explains how the creator plans and times trades around FOMC announcements. Key advice: look for news/data earlier in the week for quicker trades, then be patient and trade after Powell finishes speaking; the speaker states that typically the S&P moves about 1.7% after FOMC and volatility is about 25% higher.
About 1.7% move.
About 25% higher.
The market, it moves on news. The way that I set up each week is like, okay, what news or data is coming out this week before fomc? Like, if there are any opportunities, I'll treat it as a quicker trade. But I know the big move will happen after. Typically, after FOMC, you'll see about a 1.7% move in the S and P, and volatility is typically like 25% higher. If you know that, then when you're day trading, you need to be patient and you need to wait until Powell's done talking and then trade versus like most traders will treat every day the same that okay, I'm going to trade like this, and I have a bias here and this and that. You we need to learn to just understand what data is coming, who's speaking, and then reaction.
