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Forex Signal (Friday February 17, 2012 NY TIME 4:30am EDT) – UK Retail Sales

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Feb 16, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Friday February 17, 2012 NY TIME 4:30am EDT

    Hi All,

    Today we have UK Retail sales. Retail sales have had a bearish outlook recently, however I’m assuming that a negative result could be factored in the price. Please stay diligent with this report should we have a negative figure.

    UK Retail Sales
    Forecast -0.3%
    Previous 0.6%
    Pair to trade: GBP/USD
    Estimated Pips: 40 pips on initial spike

    The numbers we will look for:
    BUY GBP/USD at 0.2%
    SELL GBP/USD at -0.8%

    Economical Impact: High (will bring strong volatility )
    Typical Result: Good for currency
    Occurrence: Released monthly, about 20 days after the month ends


    About our Triggers:
    We will be looking for a deviation of 0.5 % to BUY GBP or 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 Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in the UK. It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the UK economy.

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

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

    Pre News
    There is no pre news for this release

    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 only enter spike if my triggers are hit. 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. I will also look for volume and MA indicators to decide if the spike is to reverse.

    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 UK Retail Sales

    All the best

    Stavro D’Amore
     
  2. gognen

    gognen Private

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    This spike brought me 33 pips of profit on GBP/USD. I used fib expansion at 1.5654 today at 14:00 to measure the T/P line and it reached near the 161.8 zone. Now the market is hesitating or to say resting. I am after retracement now and expect the price to fall at 1.5834.
     

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