📘 CPI Day Trading Strategy Cheat Sheet 🕒 1. Preparation (The Day Before or Morning Of) ✅ Check the Economic Calendar: • CPI Release Time: Usually 8:30 AM ET (New York Time) • Find the Forecasted, Previous, and Consensus values (e.g., 3.1% expected, 3.4% previous) ✅ Know the Market Context: • What’s the Fed’s current stance? (Hawkish/Dovish) • Are markets overbought/oversold on the higher timeframes? • How did the market react to last month’s CPI? ⸻ 🚦 2. Key Levels to Mark on Chart (Before Release) • Overnight high/low • Previous day high/low • Pre-market high/low • Major support/resistance on 15min/1hr timeframes • VWAP, key moving averages (20 EMA, 200 MA) These help you identify reaction zones after the news hits. ⸻ 💥 3. The Release – 8:30 AM ET (Volatility Phase) 🔥 Step-by-step plan: 1. DO NOT trade instantly at 8:30 AM (unless you’re experienced). • First candle is often a stop-hunt or fakeout. 2. Wait 3–5 minutes to see: • Directional bias (did price break out and hold?) • Did it respect or break key levels? 3. Watch the 1-minute or 5-minute chart closely: • Look for a pullback to VWAP, 9 EMA, or a breakout retest. ⸻ 🎯 4. Entry Setup Examples 📈 Bullish Setup (If CPI is below forecast → Dovish) • Price spikes up → Wait for pullback to VWAP or premarket high • Look for bullish engulfing or flag pattern • Target: next resistance or round number 📉 Bearish Setup (If CPI is above forecast → Hawkish) • Price dumps → Wait for retrace to broken support • Enter on bearish rejection • Target: prior low or Fib extension