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Forex Signal (Friday December 16, 2011 NY TIME 8:30am EDT) – US CORE CPI

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Dec 15, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Hello

    Please find attached the trade plan for today.

    US CORE CPI
    Forecast 0.1%
    Previous 0.1%
    Pair to trade: USD/JPY
    Estimated Pips: 40 pips on initial spike

    The numbers we will look for:
    BUY USD/JPY 0.3%
    SELL GBP/USD at -0.1%

    Economic Impact: High (will bring strong volatility)
    Typical Result: Good for currency
    Occurrence: Released monthly, about 15 days after the month ends

    About our Triggers:
    We will be looking for a deviation of 0.2 % to BUY USD/JPY and -0.2 to SELL GBP/USD.
    If our deviation is hit, there is a strong possibility that the market will move 40 pips on spike immediately; there is a good chance that we will get a 30% retracement before entering if we miss the spike.

    What is it? Why does the market care?
    The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

    Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate

    A higher than expected reading should be taken as positive/bullish for the USD
    A lower than expected reading should be taken as negative/bearish for the USD

    Method I use to trade this:
    Stavro D’Amore Trading Method

    Felix Trading Indicators
    Trading Description's

    Pre News
    Approximately within the 30 minutes and up to 5 min prior to the news release I will be looking for a short term LONG position using EUR/USD pair.
    I would be out of this trade 2 minute before the actual release, or to avoid any spreads that should widen to protect myself.

    How to determine my Pre news trade
    Please only follow this if you have basic knowledge of technical, if not please practice and use various demo accounts prior to using any professional strategy I suggest. To determine my short position on an MT4 chart, I will pull up a 1mintime frame EUR/USD chart.

    I will then load two MA (moving average) indicators to my chart, the first MA I will load will be on set to period 9 whilst the other I will set to a period of 20. I would also recommend you change the colour of both I usually use green and red.

    When I see the down trend occur and my MA crosses over I will enter short, I want to be out of this trade in profit at least 2 min before the release. I will have a Stop loss of 15 pips and a TP either when I see the trade looking flat (looking at Volume Bars that is) or when an initial reversal comes to play.

    Your MA should look like the chart below, red and green I would have entered short on this trade during the cross over.

    MACRSS.


    Spike Trading
    I do recommend spike trading as an option if you have an Auto clicker.
    Please use limit orders or bounds set to 15 pip entry

    After Spike
    I will look for a 30% retracement in the original spike before entering a trade; I will close half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price.

    My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame. I expect to be in this trade for a total of 30 mins.

    Historical Chart and Data US CORE CPI

    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Dec 15, 2011
    Lasted edited by : Sep 8, 2016
  2. yhloh

    yhloh Recruit

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    forex signal

    Hello,
    Do you mind explain what the % means in tems of price:

    BUY USD/JPY 0.3%
    SELL GBP/USD at -0.1%


    Regards
     
  3. nadanadya

    nadanadya Recruit

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    What is Auto clicker please, can u explain ?? Thanks

    Can you explain me please what is auto clicker ??
     
  4. Klem

    Klem Private

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    Stavro...CPI no longer moves markets and lately not even in the right direction. Please update your copy/paste CPI document...and do some homework
     
  5. digamer

    digamer Private, 1st Class

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    +1

    Also, if I recall correctly, for the past 7 months it always came with no dev or 0.1 at most..never a proper/tradable spike reaction...not even on eurjpy and other jpy crosses, which it's the best to trade on. Taking risk sentiment in consideration should also be mentioned..actually even added to all the copy-paste's.

    Pre-trading this on EURUSD with MA crossover sounds like a 50/50 gamble..but that's only my opinion.
     
  6. nadanadya

    nadanadya Recruit

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    Dear stavro
    What is Auto Clicker please?/
    Can you explain me???
    Thanks
     
  7. Louis123321

    Louis123321 Corporal

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    Thanks for another great signal ! The pre news trading on this just made me a decent amount of pips even though the actual news trade was not triggered.

    Keep up the good work.

    PS; do you think market will trend downwards now, or keep on retracing to 1.31+ ? eurusd, thanks
     
  8. Jason Aleksei

    Jason Aleksei Failed ALL tests of his claimed psychic abilities.

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    Each trader needs to evaluate their own risk tolerances independently. Just because Stavro proposes a potential trade does not require that you take it.
     

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