Post-CPI Trading (Mean Reversion or Trend Continuation)
• If price overextends, watch for profit-taking reversals at major FVGs or order blocks.
• If price holds above/below key levels, the trend may continue.
Key Tip:
• If CPI confirms a macro trend (e.g., inflation cooling = bullish for risk assets), consider holding for a few days (aligns with your 3-4 day swing trading approach).
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4. Example Trade Setup for Crypto (Bitcoin Example)
Scenario: CPI Higher than Expected (Bearish Crypto)
1. Pre-release: BTC pumps into a 1H supply zone.
2. CPI release: BTC wicks above previous highs (liquidity grab), then dumps.
3. Entry: Short after MSB on 1M-5M timeframe.
4. Stop-loss: Above the liquidity grab wick.
5. Target: Next FVG or demand zone.
Scenario: CPI Lower than Expected (Bullish Crypto)
1. Pre-release: BTC sweeps local lows (sell-side liquidity).
2. CPI release: BTC spikes up, breaking key resistance.
3. Entry: Long on a breakout retest.
4. Stop-loss: Below the breakout level.
5. Target: Next liquidity zone (previous swing high).
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Final Tips
✅ Trade only if the setup is clean (avoid emotional FOMO trades).
✅ Consider waiting 5-15 minutes after CPI to let volatility settle.
✅ Watch the dollar index (DXY)—if it spikes, crypto usually drops.
✅ Avoid trading during the news if uncertain—let the market show direction first.
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