KOG - JACKSON HOLE Part 1Jackson Hole Symposium:
What is the Jackson Hole Symposium?
The Jackson Hole symposium (Economic Policy Symposium) is held in Jackson Hole, Wyoming USA. It is an event attended by the worlds top financial professionals including ministers, bankers and academics. It is a closed event so no press are allowed access to the meetings or talks. Instead, press conferences are held throughout the event where any comments from financial professionals usually move the markets and cause extreme volatility.
This is not the usual analysis we provide. Instead, what we wanted to show you is the last 3-4yrs of market data illustrated on the charts, giving you an idea of what this event can do and cause on the markets. In this example, on Gold.
So, lets start with last year, 2021. We can see the price was at a similar price point to where we are today, just slightly higher at around the 1780 level. The early sessions were quiet, however, after a retest of the low look at the aggressive move to the upside! Price started at 1780 and the move completed at 1836. 500+ pip move in a matter of days.
Lets look at the top right chart, 2020. Again, look at the choppy price action, the whipsaw up and down, then the rested of the low before an aggressive move to the upside. Price started at 1904 and the move completed at 1994. 900pip movement in a matter of days.
Now 2019, a slow start in the early sessions, all of a sudden, a rested on the low and then another aggressive move to the upside. Price started at 1491 and completed the move 1557. Over 500pip movement in a matter of days!
What we’re trying to show you here is that its going to be a very difficult event to trade for new traders. Its going to be choppy, its going to be volatile, its going to whipsaw and its likely to move. If you’re caught the wrong side of it its going to kill your account. Best practice here is to let the market make the moves it wants to, wait for the price to settle in whatever level they want to drive it to, once this has happened then look for the setup to get in to the trade.
Hope this helps.
As always, trade safe.
KOG
