Forex Trading Signal 10/14/08

Crazy Cat

Former FPA Special Consultant
Hi there my forex friend :)

Hi-Quality Preview/Review:
1) 10-14-2008.swf

There was no news coming out on Monday so nothing really to review.

Let's talk about Tuesday.

1. Tuesday, October 14th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK CPI coming out. It is expected it will come out at 5.00%. High CPI no longer means currency strength, we might see some spike up but most likely higher CPI would weaken British pound. Therefore, if UK CPI y/y came out 5.1% or higher, and the other numbers agree, try to sell GBP/USD as the spike starts to reverse. If it comes out at 4.9% or 4.8% or lower and the other numbers agrees, try to buy GBP/USD on the spike down as soon as it seems it is going to reverse.

2. Tuesday, October 14th, 2008 (5:00 a.m. New York Time) EURO ZONE
At 5:00 a.m. we will have German ZEW. Last month it failed really bad. Right now it seems the market is oversold so the German ZEW might be an excuse to push the price higher. I think if we get +/- deviation of 8, it should move more than 25 pips like last month. It is expected to come out at -50. If it comes out at -42 or higher, I would buy EUR/USD and expect 40 to 50 pips (but be careful!). If it comes out at -58 or lower, I would sell EUR/USD and expect it go go down by 40 pips. I think sell is more risky than buy here, and I think even a deviation of +/-5 should cause some reaction on EUR/USD.

Again, be careful with that German report. Last month I was just about to commit suicide after it, here is the video:

For other very useful and interesting informations, please watch the Sir Pips' video.

That would be all for Tuesday.

Sirpipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $9.99 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.

Good luck trading guys!

To Our Success!
-Crazy Cat && Sir Pipsalot

The video with the signal is recorded by Sir Pipsalot.
For your convenience, this text is written based on the video by Crazy Cat
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Is the following practice generally applied by brokers? - And how can I trade news events if these restrictions apply?

(Read notice received from CMS Forex):

The minimum range between a new stop or limit order and the market price is a function of current market volatility. It is obvious that during, or immediately preceding, significant economic announcements, market volatility is greatly increased. As a consequence, most FCMs have 2
options: (1) widening the spread on currency pairs, or (2) increasing the entry stop and limit ranges. Effective immediately, the required range between a new stop or limit order and the market price will increase from 5 pips to a maximum of 35 pips approximately 15 minutes before a significant economic announcement, in order to reflect the degree of current market volatility. During extremely fast market moves, you may therefore notice that you are unable to place or move any stop or limit order to within 35 pips of the current market price. As do many FCMs, CMS offsets many orders with counterparty banks that supply price feeds. During the heavy market conditions, it is extremely difficult to get prices from these counterparties. This is another reason why CMS has adopted this policy. CMS feels that this policy is more beneficial to the client than offering a variable spread during times of peak volatility. This setting is generally put into place 15 minutes before the news and reset at most 30 minutes afterward.
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