Signals Review (May 17 - May 21)

[Crazy Cat]

Hi there

This is Crazy Cat, with the review of the week.

This week, we were watching 6 economic indicators and 1 of them hit the trigger.

Friday, May 21, 08:30 am EST, CANADA
Canadian Retail Sales

The Core Retail Sales m/m came out 1.7 vs 0.4 expected, and Retail Sales m/m came out at 2.1 vs 0.1 expected so both of them deviated nicely. However, the price action was quite disappointing, and that's why I was very hesitant with my call on this report. In fact, I said that it would be OK to skip that report, and, in fact, last minute I decided not to trade it myself.

As we can see from the chart, the price spiked down by almost 30 pips but it reversed very quickly and USD/CAD was traded well above the prerelease price (which would be SL). If you made some money on this, congratulations; if you lost, well, things like this happen, and I admit it was a bad price action, especially that both numbers came out well better than expected.

Here is the chart:
Forex news trading currency exchange charts

Other than that, it was a very slow week.

Have a nice Sunday!
-Crazy Cat

 

[West Coast Pips]

I would suggest staying away from this release in the future. I was stunned to see how price action moved with these big deviations. Personally, I lost a lot of money on this release.

 

[Reda DAIMELLAH]

Time Frame

Please what is the best time frame to trade the news, m1, m5, m15, m30, or H1,..... ???? thanks for your help.

 

[West Coast Pips]

You really need 1 minute or tick charts to trade the news.

 

[ochills]

Mr Ochills

pls how can one trade the news
thanks

 

[West Coast Pips]

This website will give you all the info you need about how to trade the news: Fast Economic News / Secret News Weapon SNW
Do be careful though, trading the news is risky and I would advise you demo trade first then open a micro account so you keep your risk low.

 

[LEXngton]

The deviation was huge but the spike and total move were horrible! Luckilly I got a good fill and made a very quick exit and actually made a whopping 4 pips. To be honest I feel lucky to have accomplished that. This report has definately lost its mojo for the time being.

 

[Reda DAIMELLAH]

Thanks a lot West Coast Pips

 

[abbeyglobe]

Best time frame for news

Please what is the best time frame to trade the news, m1, m5, m15, m30, or H1,..... ???? thanks for your help.

the best time frame for news has I've tested it myself over 4 months is 15 minutes. and you should be careful or reversal. At the exact new time, it will move very fast. Once you notice that it stop and reversing, please close the order immediately because it can rake off all the profit made. Little is better than none.
Good day.

 

[West Coast Pips]

I've been trading the news for 5 years now. You cannot spike trade the news using a 15 minutes chart. You really will not get a good feel of where price action is as soon as news comes out if you look at 15 minutes chart.

I know the 1 minute chart and tick ones are the most sensible to choose from when trading the news. You may well employ a tactic using 15 minutes chart after the news comes out, but certainly not as soon as it hits the wires.