Forex Trading Signals Summary - Wednesday, February 5 2014

[Peter O]

What is news trading? How does forex news trading work?​

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have access to low latency forex trading software. Sounds too complex or expensive? Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. Best of all: Forex News Gun - automated forex trading software is free for all. You find all details on Forex News Gun forum and if you want make pips easier you can find additional tools at Forex Tactical Squad.

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Forex News Gun Trade Plan


USA ADP Nonfarm Payroll - 8:15am NY time (Wednesday, February 5)


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	Traded pair	Expected figure	Deviation trigger
	USDJPY	190 (k)	±50 (k)

	Buy	USDJPY	if actual figure is or is above	240 (k)
	Sell	USDJPY	if actual figure is or is below	140 (k)

Expected move during first 20 minutes after the release is 40 pips or more.




Review historical charts where the same deviation of at least 50 (k) occurred:


USA ADP Nonfarm Payroll history of charts.


Once there, set filter to Difference Actual-Forecast >= 50 and click "Filter" to see list of charts.




To review Forex News Gun step by step trade plan go to weekly detailed posts.




--–––––————— FNG Configuration —————–––––--


Release name in FNG client: ADP National Employment Report


Clicks: first row is for Sell USDJPY button, second one is for Buy USDJPY button:







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O O O
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Diamonds Trading Signals Trade Plan


USA ADP Nonfarm Payroll - 8:15am NY time (Wednesday, February 5)


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	Traded currency pair	:	USDJPY
	Initial spike duration limit	:	15 seconds
	Initial spike price action threshold	:	15 pips
	Triggering retracement percentage	:	40 %
	Retracement duration limit	:	40 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	10 pips
	Take profit	:	10 pips
	Maximum spread	:	2 pips

1. If between 08:15:00am and 08:15:15am, so during the first 15 seconds you see USDJPY move up or down by 15 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it doesn't take more than 40 seconds (till 08:15:40am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
   
   
2. If the move either up or down was less than 15 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.
   
   
3. If by 08:30:00am, 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.

To review Diamonds Trading Signals more detailed trade plan go to weekly posts.


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O O O
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Forex News Gun Trade Plan


USA Non-Manufacturing PMI - 10:00am NY time (Wednesday, February 5)


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	Traded pair	Expected figure	Deviation trigger
	USDJPY	53.7	±2.5

	Buy	USDJPY	if actual figure is or is above	56.2
	Sell	USDJPY	if actual figure is or is below	51.2

Expected move during first 30 minutes after the release is 20 pips or more.




Review historical charts where the same deviation of at least 2.5 occurred:


USA Non-Manufacturing PMI history of charts.


Once there, set filter to Difference Actual-Forecast >= 2.5 and click "Filter" to see list of charts.




To review Forex News Gun step by step trade plan go to weekly detailed posts.




--–––––————— FNG Configuration —————–––––--


Release name in FNG client: ISM Non-Manufacturing Composite


Clicks: first row is for Sell USDJPY button, second one is for Buy USDJPY button:







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O O O
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Diamonds Trading Signals Trade Plan


USA Non-Manufacturing PMI - 10:00am NY time (Wednesday, February 5)


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	Traded currency pair	:	USDJPY
	Initial spike duration limit	:	30 seconds
	Initial spike price action threshold	:	12 pips
	Triggering retracement percentage	:	40 %
	Retracement duration limit	:	90 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	10 pips
	Take profit	:	10 pips
	Maximum spread	:	2 pips

1. If between 10:00:00am and 10:00:30am, so during the first 30 seconds 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 doesn't take more than 90 seconds (till 10:01:30am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
   
   
2. 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.
   
   
3. 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.

To review Diamonds Trading Signals more detailed trade plan go to weekly posts.


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O O O
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Forex News Gun Trade Plan


Australia Retail Sales - 7:30pm NY time (Wednesday, February 5)


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	Traded pair	Expected figure	Deviation trigger
	AUDUSD	0.4 (%)	±0.5 (%)

	Buy	AUDUSD	if actual figure is or is above	0.9 (%)
	Sell	AUDUSD	if actual figure is or is below	-0.1 (%)

Expected move during first 30 minutes after the release is 20 pips or more.




Review historical charts where the same deviation of at least 0.5 (%) occurred:


Australia Retail Sales history of charts.


Once there, set filter to Difference Actual-Forecast >= 0.5 and click "Filter" to see list of charts.




To review Forex News Gun step by step trade plan go to weekly detailed posts.




--–––––————— FNG Configuration —————–––––--


Release name in FNG client: AUD Retail Sales SA


Clicks: first row is for Sell AUDUSD button, second one is for Buy AUDUSD button:







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O O O
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Diamonds Trading Signals Trade Plan


Australia Retail Sales - 7:30pm NY time (Wednesday, February 5)


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	Traded currency pair	:	AUDUSD
	Initial spike duration limit	:	15 seconds
	Initial spike price action threshold	:	15 pips
	Triggering retracement percentage	:	30 %
	Retracement duration limit	:	90 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	10 pips
	Take profit	:	10 pips
	Maximum spread	:	2 pips

1. If between 07:30:00pm and 07:30:15pm, so during the first 15 seconds you see AUDUSD move up or down by 15 pips or more, then enter in the direction of the initial spike at the very first 30% retracement if it doesn't take more than 90 seconds (till 07:31:30pm) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
   
   
2. If the move either up or down was less than 15 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.
   
   
3. If by 07:45:00pm, 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.

To review Diamonds Trading Signals more detailed trade plan go to weekly posts.


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[Exoskeletor]

peter may i ask something?
why in diamond trading we wait for the retracement first? why not to enter from the very beggining initial spike for 5-10 pips? is it more safe this approach?

 

[Peter O]

Diamond Trading Signals trade plane doesn't need such low reaction time than Forex News Gun does - latter is meant to enter right at the beginning of the spike. In addition to that for FNG we need to know surprise factor, that is the difference between actual and forecast values. For DTS we only need to follow price action so really no need for any additional software to make it profitable.

 

[Exoskeletor]

Diamond Trading Signals trade plane doesn't need such low reaction time than Forex News Gun does - latter is meant to enter right at the beginning of the spike. In addition to that for FNG we need to know surprise factor, that is the difference between actual and forecast values. For DTS we only need to follow price action so really no need for any additional software to make it profitable.

why we dont enter right at the beggining of the spike? why not to just enter a buy stop and limit stop above and below current price and wait to gain 10 pips. what im asking is why we need the retracement first, is it a bigger confirmation? if we just do what i say with buy and limit spot most of the times we will not even gain 10 pips or our tp?

 

[Peter O]

We do enter right at the beginning of the spike but only with Forex News Gun because we want to be sure that the spike will be there.

There are strategies with stop and limit orders and they can be quite profitable, however, it's a different thing to that in Diamond Trading Signals. Those strategies trades the spike as well - unlike DTS. Every strategy needs backtest so let's say aiming to grab that 10 pips is a possible but not necessarily optimal (or even profitable) way. Think of that what happens when there is no significant deviation and only volatility increases. Buy stop order may trigger immediately along with widening spread but market hasn't any chance to reach sell limit. Position can be stuck in easily.

With DTS we wait for the initial spike in order to be sure that the event moves the market significantly - and then we make profit on high probability trend continuation.

I can imagine this stop/limit strategy can work fine but I assume every event type and currency pair needs its own history research so that to optimize parameters properly.

 

[Exoskeletor]

We do enter right at the beginning of the spike but only with Forex News Gun because we want to be sure that the spike will be there.

There are strategies with stop and limit orders and they can be quite profitable, however, it's a different thing to that in Diamond Trading Signals. Those strategies trades the spike as well - unlike DTS. Every strategy needs backtest so let's say aiming to grab that 10 pips is a possible but not necessarily optimal (or even profitable) way. Think of that what happens when there is no significant deviation and only volatility increases. Buy stop order may trigger immediately along with widening spread but market hasn't any chance to reach sell limit. Position can be stuck in easily.

With DTS we wait for the initial spike in order to be sure that the event moves the market significantly - and then we make profit on high probability trend continuation.

I can imagine this stop/limit strategy can work fine but I assume every event type and currency pair needs its own history research so that to optimize parameters properly.

ok got it, thanks, forex news gun has delay am i right?if this delay disappear then the program will be great

 

[Peter O]

There is some delay but aim is to minimize FNG delay by improving infrastructure and feed of course.