The Federal Reserve's interest rate decision will be made at 2:00 a.m. Beijing time on the 19th. Here are three possible scenarios and a way to make money without losing money.
There are three general views on the market regarding the rate cut decision tonight.
The probability of a 50 basis point rate cut is 66%, which may lead to a sharp rise; the probability of a 25 basis point rate cut is 34%, with limited gains and a possible wash-out; the probability of no rate cut is low, and if no rate cut occurs, there may be a sharp drop.
The above is the generally believed situation.
Next, I will share a strategy that can make money without losing money, which can be used in most important news in history.
Take the CPI data released at 8:30 p.m. on the 11th of this month as an example.
As shown in the figure, after the data was released, Bitcoin suddenly rose and then suddenly fell. This is the so-called "Heaven and Earth Needle".
In this case, we only do contrarian trading in the "second direction". In this example, the rise is the first direction and the fall is the second direction. Then, we go long immediately after the second direction appears.
Because after the two directions of the "Heaven and Earth Needle" come out, the price tends to return to the median between the high and the low. So, in this example, we went long after the second direction appeared, and when the price moved toward the "median" at the low point, we successfully made a profit.
Once the news causes a huge market fluctuation and the "Heaven and Earth Needle" appears, this will be a strategy with a winning rate of more than 90%. You can use it to make a profit instead of complaining that the dealer has started to harvest again.
Even though I shared this method a long time ago, I still hope that more people can see it and provide effective help before the important news tonight.