Trading Strategy During CPI Release
a. Pre-News Fake Moves (Liquidity Grab Strategy)
• 15-30 minutes before the release, price may spike into liquidity zones before the real trend begins.
• Wait for a stop-hunt wick into an order block or FVG.
• Look for reversal confirmations:
• MSB (Market Structure Break) on lower timeframes (1M-5M).
• Divergence with volume or RSI.
• Rejection wicks and imbalance fills.
Example Setup:
• If CPI is higher than expected (bearish for risk assets), price may first spike up to grab liquidity before dumping.
• Sell at the liquidity grab with confirmation (like an MSB).
b. Post-News Trend Confirmation (Breakout Strategy)
• If there’s a clean breakout with momentum, follow the trend.
• Entry triggers:
• Strong close below support or above resistance (no wicks reclaiming).
• Retest of the breakout level with low volume pullback.
• Continuation order block retest.
• Target the next liquidity pool (e.g., previous swing low/high).
Example Setup:
• If CPI is lower than expected (bullish for risk assets), wait for a breakout above resistance, then enter on a retest.
Welcome To Grow More Trading Academy 🙂
