Refer to the technical trading strategy I posted on the 16th of Feb 2012

i’m really inspired with your admonition on begining with little at disposal to become great. no wonder the bible says “do not despise (neglect) your little beginning”. infact i must confess that i’m really blessed; by Gods grace there is a little investment i really under-estimated which i proposed to begin by last month end, but by this mind-restructuring inspiration, i shall start it by this month’s end.

May your ministry know no bounds, and may God bless your and your family immeasurably.

Bless u

Previous: 2.6%
Forecast: 0.5% to 0.6%
Time: 9:30 GMT
Pairs to trade: GBP/USD GBP/JPY
Estimated Pips: 40 pips on initial spike

Retail sales have had a bearish outlook recently.

The retail Sales released by the National Statistics measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative or bearish.

TODAY’s STRATEGY (Post News Trading)
As usual, I’ll look for a 30% to 50% retracement on the original spike (15mins chart) before placing my order, a lower retracement on the spike will be too risky to enter; I will only enter if my triggers are hit (pending order – go short on the retracement back to pre-news levels). I’ll come in within 15pips or closer to the pre-news price, or on a significant 50% retracement on the spike (trade 1 or 2 lots depending on the size of your equity)

I may also use my indicators (MACD, Bollinger Band, STOCH and maybe RSI. Too many indicators?) to decide if the spike is actually reversing or pulling my legs.

My Take Profit 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. Fibo retracement can also help here.

Don’t stay in for too long (30mins?). Take your profit and run!!!

When this type of break away happens, it breaks hard (up or down) and previous resistance becomes the new support (or previous support becomes the new resistance). Time will tell.

Some dough can be made by going short on GBP/JPY because its has retraced from resistance in bollinger and STOCH. Place your order when STOCHASTIC comes below the 80% line (to be sure its a real retracement and not a rising trend), this should happen any minute from now in the H1 (hourly) chart.

Take profit after 5 or ten PIPs. Dont forget your stop loss!!!

As usual, u can leave your comments here, send me an email (obadaj1 @ gmail . com) or chat with me on facebook (search for Jerome Obada). I’ll be giving out free ‘Range Trading’ ebooks today, if u are interested, leave your name and email as a comment here (scroll down to the bottom of the page).

STRATEGY FOR TODAY
GBP ‘base’ currency pairs (GBP/USD, GBP/JPY etc) seems to be on a gentle down trend so take this into consideration when goin ‘long’.

I normally use MACD, STOCH, RSI and Bollinger to confirm an upward or downward trend before placing my market order. I then use fibo retracement & Pivot points to know where to take profit.

GBP JOBLESS CLAIMS CHANGE (JAN)
Forecast: 3.0K to 3.3K
Previous: 1.2K
Pairs to trade: GBP/JPY GBP/USD
Time: 9:30 GMT

Measures the number of people who claim unemployment benefits, but are actively seeking work. Released with the Claimant Count report, Jobless Claims Change serves as a barometer for the health of the UK labor market. There is a tendency to influence the GBP volatility. Generally speaking, a rise in this indicator has negative implications for consumer spending which discourage economic growth. A high reading is seen as negative (or Bearish) for the GBP, while a low reading is seen as positive (or Bullish).

GBP BANK OF ENGLAND QUARTERLY INFLATION REPORT
Forecast: NA
Previous: NA
Pairs to trade: GBP/JPY GBP/USD
Time: 10:30 GMT

The Bank of England quarterly publishes a report of the detailed economic analysis and inflation projections on which the Bank’s Monetary Policy Committee bases its interest rate decisions, and presents an assessment of the prospects for UK inflation over the following two years. A high reading is seen as positive (or Bullish) for the GBP, whereas a low reading is seen as negative.

Checkout my facebook profile to see how I’ll trade this news.

the write up is vintage dipo, motivational as ever.

keep it up.

balogun