ECB 26 April 2018
Market structure should never be discounted even in light of economic events – a market that is set to go higher may well ignore bearish news as the willingness of participants to buy outweighs the impact of new information. In preparing for any event, especially a Central Bank event, market structure enables trades to be assessed in terms of the ones which would fit with the current technical picture and which would require significant news to play out – this way in the event of no news, the trades that fit with the current picture may well play out faster after the event, as more participants are active in the market.
Building up an appreciation or structure requires consistent debriefing which not only enhances recognition of patterns but also takes in clues that enable trades to be put on. Coming into the last ECB meeting, the Bund had a bullish structure so barring anything game-changing, a move higher was favoured, still small pieces of hawkish rhetoric provided short term bearish trades before a larger up move. By understanding structure and preparing for a move higher, trades could be taken on after the press conference to take advantage of the larger move.
In this live Axia debrief, Nic talks through some of the trades available and how he debriefs them after a neutral/dovish ECB statement and press conference with focus on where the clues were to the up move which came later in the afternoon.
Trading events is the focus of an entire week during the Axia Futures 8-week career Programme where the opportunity to trade through past events and debrief them in real time gives an enhanced and faster learning experience.
If you are looking to develop a career as a trader within a professional and successful environment, then the Axia Futures 8-week Intensive Trader Training is the most comprehensive in the industry based upon skill development within the proprietary futures trading environment.