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Forex signal (Thursday October 20 2011, NY TIME 4:30am EDT) - UK Retail Sales m/m

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Oct 19, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:
    Hello all,

    Hope you have a great trading day, my trade plan and analysis for this report is below.

    UK Retail Sales m/m
    Forecast 0.0
    Previous -0.2
    Pair to trade: GBP/USD

    Numbers we need: BUY GBP/USD 0.3%
    SELL GBP/USD 0.5%

    Economical Impact: High
    Typical Result: Good for currency
    Occurrence: monthly, about 20 days
    Spike Probability: Very Good, 40 pips if triggered

    About our Triggers:
    UK Retail Sales m/m is forecasted to arrive at 0.0%.
    We are looking for a deviation of 0.3% on this trade for Long and -0.5 for short.
    If we get 0.3% or higher I will look to enter a LONG position on GBP/USD and if we get -0.5% or lower I will go SHORT on GBP/USD.
    Should this report be triggered, we can expect to see about 40pips on the initial spike.

    NOTE: I will not take retracement on this trade unless our triggers are hit or I see a minimum of 30+ pips move

    What is it? And why does the market care?
    Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.
    It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity

    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

    I will look for a 30-50% retracement in the original spike before entering a trade; I will be looking at a 5 minute chart. I will close my position as soon as I hit the original high point of the first initial spike and place a SL at the original spike 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 to analyse this.

    I do recommend spike trading as an option if you have the correct software and setup

    Historical Chart and Data for UK Retail Sales

    All the best

    Stavro D’Amore
    #1 Stavro D'Amore, Oct 19, 2011
    Lasted edited by : Sep 8, 2016

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