1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Wednesday December 21, 2011 NY TIME 10:00am EDT) – US Existing Home Sales

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Dec 20, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    Hello

    Please see My trade plan for Existing Home sales

    US Existing Home Sales
    Forecast 5.03M
    Previous 4.97M
    Pair to trade: EUR/USD

    Triggers we need: BUY EUR/USD 4.63M
    SELL EUR/USD 5.43M

    Economical Impact: Extremely Critical
    Typical Result: Good for currency
    Occurrence: Released monthly, about 23 days after the month ends


    About our Triggers:
    US Housing sector forecasted to arrive at 5.03M. We are looking for a deviation on this trade of 400K either way. This is a very critical news release as many traders and economists will be focusing on this news release. Should this trade deviate, we will see major volatility in all US pairs. We can expect to see about 45pips on the initial spike, before another 20 pips on a double spike, before we see our required retrace.

    What is it? Why does the market care?
    The Existing Home Sales measures the annualized number of existing residential buildings that were sold during the previous month. This report helps to analyze the strength of the US housing market, which helps to analysis the economy as a whole. While this is monthly data, it is reported in an annualized format (monthly figure x12). Existing homes make up the majority of total sales and therefore tend to have more impact than New Home Sales.

    It's a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction. A higher than expected reading should be taken as positive/bullish for the USD, while 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

    Felix Trade Descriptions
    Trade descriptions

    Approximately 15 minutes prior to the news release, I will be looking for a short term LONG position in EUR/USD.
    I would be out of this LONG trade 2 minutes before the actual release, or to avoid any spreads that should widen.

    I will look for a 30-50% retracement in the original spike before entering a trade; I will sell 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 do recommend spike trading as an option when

    Historical Chart and Data for US Existing Home Sales

    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Dec 20, 2011
    Lasted edited by : Sep 8, 2016
  2. farisjunior

    farisjunior Recruit

    Joined:
    Apr 6, 2010
    Messages:
    7
    Likes Received:
    0
    like i said in one of my posts to you tell me where to track you at the time of the actual release
     
  3. zarni

    zarni Recruit

    Joined:
    Nov 16, 2007
    Messages:
    91
    Likes Received:
    3
    just curious. do you actually trade? doesn't look like it. you should know in the current environment eurusd is a risk pair and not anti-dollar pair. if you don't know what you are doing better not give advice.
     
  4. PipDog

    PipDog Corporal

    Joined:
    Jul 25, 2010
    Messages:
    140
    Likes Received:
    0


    +1000000!!!!

    Actually, I don't see any pairs that are trading to the "USD News Direction"....they're all trading the risk trade. Even the USDJPY, and that is unprecedented. Makes trading the news very risky.
     
  5. zarni

    zarni Recruit

    Joined:
    Nov 16, 2007
    Messages:
    91
    Likes Received:
    3
    Not really. You just adjust to the market and trade accordingly. In this instance you would buy EURUSD on a positive number not like what this joker is saying.
    That is of course if you necessarily have to trade something like this which I wouldn't. There are much bigger issues right now than housing market.
    But the direction given here was wrong....Tired of amateurs.
     
  6. PipDog

    PipDog Corporal

    Joined:
    Jul 25, 2010
    Messages:
    140
    Likes Received:
    0

    Not really, huh? And what exactly do you define as adjusting to the market? You sound like you've got it figured out, so please educate us...:rolleyes:
     
  7. zarni

    zarni Recruit

    Joined:
    Nov 16, 2007
    Messages:
    91
    Likes Received:
    3
    I already did. If you didn't get it you shouldn't be trading.
     
  8. PipDog

    PipDog Corporal

    Joined:
    Jul 25, 2010
    Messages:
    140
    Likes Received:
    0
    I Think I Got It...



    You're an azzhole. Did you get that?
     
  9. RahmanSL

    RahmanSL Major

    Joined:
    Jan 16, 2010
    Messages:
    2,526
    Likes Received:
    218
    Stocks on companies dealing in steel cages would be a good buy!
     
  10. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    hahha Zani I wont answer that question and put you to shame :) maybe i should fly you done to see first hand :) Personally im not going to bother wasting time with critics.
     

Share This Page