News continuation trades: how do you ride the second wave?
The first move after a release is often noise; the second wave, once the market digests the data, is the trade. Continuation strategies wait for the digestion and enter with the new consensus.
What's your method?
- how you wait out the first spike
- the structure that signals the second wave
- the release where the second wave never came
The CPI guide explains the digestion process on inflation days.
Background: CPI explained: headline and core inflation for forex traders
The consumer price index is the inflation figure markets watch most closely. What it measures, why core CPI matters and how it links to interest rates.
What is the difference between headline and core CPI?
Headline CPI includes all items in the basket. Core CPI excludes food and energy, whose prices are volatile, to show the underlying trend in inflation.
What time is US CPI released?
At 8:30 a.m. New York time, usually around the middle of the month, by the Bureau of Labor Statistics.
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