Forex Signal (Tuesday March 13, 2012 – 8:30am EDT) – US Core Retail Sales

Stavro D'Amore

Former FPA Special Consultant
Messages
547
Hello

Please see my trade plan below

US CORE Retail Sales
Forecast 0.8%
Previous 0.7%
Pair to trade: USD/JPY
Estimated Pips: 30 pips on initial spike

The numbers we will look for:
BUY USD/JPY at 1.3%
SELL USD/JPY 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 0.5 % to BUY USD/JPY and -0.5 to SELL USD/JPY.
If our deviation is hit, there is a strong possibility that the market will move 30 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?
Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy.

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

See my views on the Euro

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 20% 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 20 mins.

Historical Chart and Data US CORE Retail Sales

All the best

Stavro D’Amore
 
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