Confused by the inflation news - effect on Forex?

formikatrading · Oct 20, 2021

Daily chart with candles. Bottom window is a multiple time period, dual custom oscillator.

hanneswas said:
What are we looking at? Candles (timeframe?) and rsi cross?

formikatrading · Oct 20, 2021

Looked at the monthly on this pair -- just a consolidation at support.

longandshort · Oct 21, 2021

Using price is not a good analysis. Figure out the driver of the pair and what the actual risk is, and model the impact to the exchange rate. FX pairs do exhibit momentum but if you don’t conduct an analysis you’ll be the dumb money providing liquidity for the informed.

maxinger · Oct 21, 2021

hanneswas said:
The new inflation news from BoE on the GBP stated that the inflation will be higher.
I would have expected the GBP to go down. Instead, GBP/USD runs up.
View attachment 269709

Is this only because USD is going down?

Would really appreciate any reasonable explanations on the current movements.

Thank you very much!

simply stop reading that news and there will be no confusion.

OK. serious discussion.

trading and logical thinking/reasoning don't mix.

yesterday USD weakened.
as such, GBP, AUD, crude oil, gold, copper, natural gas ...went up.

formikatrading · Oct 21, 2021

I'm good with my analysis. Thanks for your input, though.

longandshort said:
Using price is not a good analysis. Figure out the driver of the pair and what the actual risk is, and model the impact to the exchange rate. FX pairs do exhibit momentum but if you don’t conduct an analysis you’ll be the dumb money providing liquidity for the informed.

noframe · Oct 21, 2021

What I have experienced so far is that the most common way to trade news is to look for a period of consolidation or uncertainty ahead of a big number and to trade the breakout on the back of the news.

Trader200K · Oct 21, 2021

formikatrading said:
Daily chart with candles. Bottom window is a multiple time period, dual custom oscillator.

Multi-timeframe SAR Crossover … clever.

Hours and minutes?

formikatrading · Oct 21, 2021

It's all daily -- just multiple period lengths on the oscillators. I do use multi-time frame analysis too.

Trader200K said:
Multi-timeframe SAR Crossover … clever.

Hours and minutes?

Trader200K · Oct 21, 2021

Separately. Gotcha.

I was thinking you were customizing multi-time frame data in with the SAR.

formikatrading · Oct 21, 2021

That sounds like a good idea, though! Probably above my pay grade! I have some "limited" coding skills when it comes to indicators. I have had to rely / pay some others on some stuff. For this one, I took someone else's idea but tweaked it on my own (which is what I do a lot of -- just find good ideas and then make them even better).

Are you an indicator guy? Best wishes!

Trader200K said:
Separately. Gotcha.

I was thinking you were customizing multi-time frame data in with the SAR.