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Price Ladder Execution on Economic Data

GBP/USD 18 April 2018

UK CPI has been well watched this year and came into particular focus with the Bank of England seemingly unsure whether to raise rates or not – the result of the UK CPI 2.5 vs 2.7 expected and 2.3 vs 2.5 expected for the core indicated a rate hike may not be forthcoming. GBPUSD could be expected to fall on such a number creating a fast trade opportunity.

To make the most of the opportunity presented requires an ability to read the price ladder but also an understanding of how a certain market reacts – GBPUSD often reacts extremely quickly giving little opportunity to enter on the immediate release, however using the price ladder and preparation in knowing GBPUSD often ‘flicks’ back to levels after economic data provides an entry point. Furthermore, being aware that after the initial reaction a move can continue but at a slower pace enables trade to be held on to and maximised and prevents the risk of getting caught out of sync with the market’s pace.

This GBPUSD ‘flick back’ is described in this live AXIA debrief giving an entry point but also an understanding of how the market trades around these areas and how order flow generated levels are created and provide point for trailing stops.

Trading momentum strategies are covered in Module 12 of the Axia Price Ladder course where replays and trading drills provide an opportunity to further develop skills and understanding.

If you are looking to develop a career as a trader within a professional and successful environment, then the Axia Futures 8-week Intensive Trader ​Training is the most comprehensive in the industry based​ ​upon​ ​skill​ ​development​ ​within​ ​the​ ​proprietary​ ​futures​ ​trading​ ​environment.

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