Trading the CPI: A Comprehensive Guide
In this article we discuss some key trading spots for today's Consumer Price Index (CPI) and provide advice on how traders can make use of them to their advantage
Jan. 13, 2023 3:07AM
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An image of a stock market graph with arrows pointing up and down indicating movement in prices based on changes in consumer price index data points
The Consumer Price Index (CPI) is a measure of inflation that tracks changes in the prices of goods and services. It’s an important indicator for traders, as it can give them insight into future market trends. Today, we’re going to look at some key trading spots for the CPI and how you can use them to your advantage. First off, never trade at 8.30AM. This is when the CPI data is released and the markets are likely to be volatile. The actual expected CPI figure was 6.5%, which isn’t overly bearish or bullish – so traders should take this into account when making their decisions. #1: Short below 18.4K – if you think that the CPI will drop further than expected, then this could be a good spot to short sell your position. #2: Double Top abolished + Candle Pattern – if you believe that the CPI will remain steady or even increase slightly, then you may want to consider buying around 18.1K with a target price of 18.4K (but keep an eye out for any super bullish candles). For more information on trading the CPI, check out this link here [INSERT LINK]. With these tips in mind, you should have no problem navigating today’s markets!