Forex Signal (Friday January 20, 2011 NY TIME 4:30am EDT) – UK Retail Sales

Stavro D'Amore

Former FPA Special Consultant
Messages
547
Hello

Please see my trade plan for UK retail sales

UK Retail Sales
Forecast 0.6%
Previous -0.4%
Pair to trade: GBP/USD
Estimated Pips: 40 pips on initial spike

The numbers we will look for:
BUY GBP/USD at 1.%
SELL GBP/USD at 0.2%

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 0.4 % 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

Felix Trading:
Indicators

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
 
Last edited by a moderator:
Back
Top