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Forex Signal (Tuesday October 25 2011, NY TIME 8:30am EDT) -CA Core Retail Sales

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Oct 24, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:
    Hello All,

    Please find my trade plan below.

    CA Core Retail Sales m/m
    Forecast 0.4%
    Previous 0.0%
    Pair to trade: USD/CAD

    Numbers we need: BUY USD/CAD -0.1%
    SELL USD/CAD 0.8%

    Economical Impact: Critical
    Typical Result: Good for currency
    Occurrence: monthly, about 50 days after the month ends
    Spike Probability: Very Good, 50 pips if triggered

    About our Triggers:
    CA Core Retail Sales m/m is forecasted to arrive at 0.4%.
    We are looking for a deviation of 0.4% on this trade.
    If we get -0.1% or lower I will look to enter a LONG position on USD/CAD and if we get 0.8% or greater I will go SHORT on USD/CAD.
    Should this report be triggered, we can expect to see about 50pips 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?
    The Core 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 Canada, excluding auto. The Auto market tends to be very volatile and distorts the underlying actual trend. The Core data is therefore thought to be a better gauge of spending trend as it excludes auto. It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the Canadian economy.

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

    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 half 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.

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

    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 because the liquidity is very good at the moment if you are using an ECN broker.

    Historical Chart and Data for CA Core Retail Sales

    All the best

    Stavro D’Amore
    #1 Stavro D'Amore, Oct 24, 2011
    Lasted edited by : Sep 8, 2016

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