After Spike Trade Plans for Week 16, Apr 16 – Apr 22 2017

Peter O

Special Consultant to the FPA
Messages
4,744
How does after spike forex news trading work?

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have good trade plans to benefit from price action as they unfold after an ecomonic release. Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. You can find more details at Introduction to Afterspike Trading using Diamonds Trading Signals.
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Hello Fellow Traders,

On this week (April 16 - April 22) we have 3 tradable releases for Diamonds Trading Signals:


⋯⋯⋯⋯⋯ Friday, April 21 ⋯⋯⋯⋯⋯
(brief summary)

UKRetail Sales4:30am NY time
CanadaCore CPI8:30am NY time
USAExisting Home Sales10:00am NY time



Cheers,
Peter
 
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Diamonds Trading Signals Trade Plan​

UK Retail Sales ⋯ 4:30am NY time (Friday, April 21)

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Traded currency pairGBPUSD
Initial spike duration limit15 seconds
Initial spike price action threshold12 pips
Triggering retracement percentage35 %
Retracement duration limit40 seconds
Maximum trade hold time after release10 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 pips


  1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.

    If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.

  2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 04:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of GBPUSD on your chart.

  3. If between 04:30:00am and 04:30:15am, so during the first 15 seconds after the report, you see GBPUSD move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 35% retracement if it occurs in 40 seconds from release time (till 04:30:40am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.

    The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 35% retracement on your chart, compared to the initial spike, click to enter without any hesitation.

    If the move either up or down was less than 12 pips during the first 15 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade. If your spread at the time of desired entry is more than 2 pips, then skip the trade.

  4. If by 04:40:00am, so 10 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.


Previous Example: on April 20 2012, at 4:30am, UK Retail Sales number was released, so in the first 10 seconds, the price of GBPUSD spiked up by 31.9 pips from 1.60822 to 1.61141. Then price started retracing, and within about 25 seconds retraced to 31% level of 1.61041 but it didn't continue retracing. This retracement was lower than trade plan's minimal 35% level so we didn't enter the market.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.


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Diamonds Trading Signals Trade Plan​

Canada Core CPI ⋯ 8:30am NY time (Friday, April 21)

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Traded currency pairUSDCAD
Initial spike duration limit15 seconds
Initial spike price action threshold10 pips
Triggering retracement percentage40 %
Retracement duration limit40 seconds
Maximum trade hold time after release15 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 pips


  1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.

    If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.

  2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 08:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDCAD on your chart.

  3. If between 08:30:00am and 08:30:15am, so during the first 15 seconds after the report, you see USDCAD move up or down by 10 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it occurs in 40 seconds from release time (till 08:30:40am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.

    The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 40% retracement on your chart, compared to the initial spike, click to enter without any hesitation.

    If the move either up or down was less than 10 pips during the first 15 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade. If your spread at the time of desired entry is more than 2 pips, then skip the trade.

  4. If by 08:45:00am, so 15 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.


Previous Example: on July 20 2012, at 8:30am, Canada Core CPI number was released, so in the first 2 seconds, the price of USDCAD spiked up by 10.6 pips from 1.01075 to 1.01181. Then price started retracing, and within about 16 seconds retraced to 40% level of 1.01139. So you would Buy at 1.01139, set a stop/loss at 1.01039, and set a take/profit at 1.01239. 4 minutes after the report the take/profit was hit yielding 8.0 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.


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Diamonds Trading Signals Trade Plan​

USA Existing Home Sales ⋯ 10:00am NY time (Friday, April 21)

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Traded currency pairUSDJPY
Initial spike duration limit30 seconds
Initial spike price action threshold12 pips
Triggering retracement percentage40 %
Retracement duration limit80 seconds
Maximum trade hold time after release15 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 pips


  1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.

    If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.

  2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 09:59:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDJPY on your chart.

  3. If between 10:00:00am and 10:00:30am, so during the first 30 seconds after the report, you see USDJPY move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it occurs in 80 seconds from release time (till 10:01:20am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.

    The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 40% retracement on your chart, compared to the initial spike, click to enter without any hesitation.

    If the move either up or down was less than 12 pips during the first 30 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade. If your spread at the time of desired entry is more than 2 pips, then skip the trade.

  4. If by 10:15:00am, so 15 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.


Previous Example: on January 22 2013, at 10:00am, USA Existing Home Sales number was released, so in the first 28 seconds, the price of USDJPY spiked down by 13.9 pips from 88.858 to 88.719. Then price started retracing, and within about 62 seconds retraced to 40% level of 88.775. So you would Sell at 88.775, set a stop/loss at 88.875, and set a take/profit at 88.675. 6 minutes after the report the take/profit was hit yielding 8.0 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.


⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
 
Last edited:
How does after spike forex news trading work?

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have good trade plans to benefit from price action as they unfold after an ecomonic release. Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. You can find more details at Introduction to Afterspike Trading using Diamonds Trading Signals.
⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯

Hello Fellow Traders,

On this week (April 16 - April 22) we have 3 tradable releases for Diamonds Trading Signals:


⋯⋯⋯⋯⋯ Friday, April 21 ⋯⋯⋯⋯⋯

UKRetail Sales4:30am NY time
CanadaCore CPI8:30am NY time
USAExisting Home Sales10:00am NY time



Cheers,
Peter

Happy Easter Peter and great you are back on my screen again.
Thank you for the trades, 2 look extra nice so i hope to them justice :)
Here is to an interesting ride together- Good Luck everyone!
regards joh
 
I am still strangling to ge my demo todate can you help me
Hi Niko,
Sorry to hear you are still struggling to get your demo going? It can a bit of a nuisance but hang in there Niko cause these frustrations are all part of trading the Forex. Hopefully it will not be long and you can start to experiment with this exciting new venture.
If you do not mind my making a suggestion, when you need some help please be 'specific' , meaing what exactly do you need help with so hopefully someone that can help you may do so..
Good luck
 
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If I log in it will always say authorization fail can you please help or advice

Niko what do you mean? If you log in where? with whom? What? Your platform? This is what i mean please be 'specific', many are volunteers here. Whom or what does not allow/authorised you entry to what? If it is you your platform? broker? then contact your broker - As you can see i have no idea what you want, you need to be clearer.
 
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