Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello members,
I have the following trade plan for you to share:
Canadian GDP m/m
Forecast 0.2%
Previous -0.3%
Pair to trade: USD/CAD
Numbers we need:
BUY USD/CAD -0.5% or Worse
SELL USD/CAD -0.1% or Better
Economical Impact: High
Typical Result: Good for Currency
Occurrence: 60 days after the month ends
Spike Probability: Good, we can see 30 pips on initial spike
About our Triggers:
CA GDP m/m is forecasted to arrive at -0.3%
We are looking for a deviation of 0.2% either way on this trade.
If we get -0.1% or better I will look to enter a SHORT position on USD/CAD and if we get
-0.5% or worse I will go LONG on USD/CAD.
Should this report be triggered, we can expect to see about 30 pips on the initial spike. We have no known conflict for this release. This trade will have a good chance of a 50% retrace on the initial spike
What is it? And why does the market care?
The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy's health. Canada releases fresh GDP data on a monthly basis. The monthly percent changes in GDP shows the growth rate of the economy as a whole.
A higher than expected reading should be taken as positive/bullish for the CAD
A lower than expected reading should be taken as negative/bearish for the CAD.
Method I use to trade this:
Stavro D’Amore Trading Method
I will look for a 30-50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.
I do recommend spike trading as an option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you are using an ECN broker.
Historical Chart and Data for CA GDP
All the best
Stavro D’Amore
I have the following trade plan for you to share:
Canadian GDP m/m
Forecast 0.2%
Previous -0.3%
Pair to trade: USD/CAD
Numbers we need:
BUY USD/CAD -0.5% or Worse
SELL USD/CAD -0.1% or Better
Economical Impact: High
Typical Result: Good for Currency
Occurrence: 60 days after the month ends
Spike Probability: Good, we can see 30 pips on initial spike
About our Triggers:
CA GDP m/m is forecasted to arrive at -0.3%
We are looking for a deviation of 0.2% either way on this trade.
If we get -0.1% or better I will look to enter a SHORT position on USD/CAD and if we get
-0.5% or worse I will go LONG on USD/CAD.
Should this report be triggered, we can expect to see about 30 pips on the initial spike. We have no known conflict for this release. This trade will have a good chance of a 50% retrace on the initial spike
What is it? And why does the market care?
The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy's health. Canada releases fresh GDP data on a monthly basis. The monthly percent changes in GDP shows the growth rate of the economy as a whole.
A higher than expected reading should be taken as positive/bullish for the CAD
A lower than expected reading should be taken as negative/bearish for the CAD.
Method I use to trade this:
Stavro D’Amore Trading Method
I will look for a 30-50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.
I do recommend spike trading as an option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you are using an ECN broker.
Historical Chart and Data for CA GDP
All the best
Stavro D’Amore
Last edited by a moderator: