Jackson Hole and the quiet before it

[Shadow Trader]

Every August, central bankers gather in Wyoming for a symposium. The Federal Reserve chair's speech has often been used to signal major policy shifts.

The days leading up to the speech tend to be quiet. Positioning is cautious, ranges narrow and volume falls. Then the speech lands and volatility spikes, sometimes producing the largest moves of the month.

For scalpers, this pattern creates two problems. In the quiet days, small ranges and wide-ish spreads make profitable scalping harder. During the speech, price can whip violently in both directions as traders parse the text.

Often the initial reaction reverses once the full remarks and the question-and-answer session are digested.

The practical lesson is to know the schedule of such events well ahead, and to treat them like any other high-impact release: reduce size, avoid pending orders and wait.

Which major central bank events are marked on the calendar here, apart from the regular rate decisions?