Wednesday September 21, 2011 NY TIME 4:30am EDT NY TIME) – UK MPC Meeting Minutes

[Stavro D'Amore]

Hello,

Will start the day today with the following, Please be diligent trading this report.

UK MPC Meeting Minutes
Forecast: 0-0-9
Previous: 0-0-9
Pair to trade: GBP/USD

The numbers we will look for:
BUY GBP/USD if we get 2 Votes for hike
SELL GBP/USD if we get 2 Votes for quantities easing

Economical Impact: High (will bring strong volatility to GBP pairs)
Typical Result: More hawkish than expected is good for currency
Occurrence: Released monthly, 13 days after the Official Bank Rate is announced


About our Triggers:
The breakdown of the MPC member’s interest rate votes tends to be the most important part of the minutes. The vote is reported as X-X-X format, we are currently on 0-0-9 forecast and previous was also 0-0-9.
The first number is how many voted to increase rates.
The second number is how many voted for a rate reduction
The third number is how many voted to hold rates.
If we get 2 votes for an increase (which is very unlikely) we will immediately BUY GBP/USD. If we get 2 votes for quantities easing we will sell GBP/USD. Should the vote remain the same, I will not enter this trade on any retracement due to uncertainty and other comments that could have been circulated during the MPC meeting.

What is it? Why does the market care?
The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier.
It gives a picture of economic conditions in the UK.
It also records the votes of the individual members of the Committee
If the BoE is hawkish about the inflationary outlook; it should be taken as positive/bullish for the GBP.

Method I use to trade this:
Stavro D’Amore Trading Method

Approximately 5 minutes prior to the news release I will be looking for a short term SHORT position using GBP/USD pair. I would be out of this Short trade 1 minute before the actual release, or to avoid any spreads that should widen.

I do NOT recommend spike trading as an option for this release.

Historical Chart and MPC Meeting Minutes

All the best

Stavro D’Amore

 

[qwerty63]

pre-news: short or long?

 

[Stavro D'Amore]

pre-news: short or long?

Thanks it was short, have amended

 

[Samuel Siaw]

Hi Stavro, what signal would you need to enter SHORT on the pre-news?

 

[Fxonuoha]

Great!

Thanks Stavro,
I'm on alert already.

 

[Fxonuoha]

Thanks

Thanks Stavro,
but how do we know when to enter short as you said?
Is it with the use of MA's?If so,using what periods?
Great work though!

 

[gudule95]

He said :"Approximately 5 minutes prior to the news release " :nerd:

 

[Stavro D'Amore]

Thanks Stavro,
but how do we know when to enter short as you said?
Is it with the use of MA's?If so,using what periods?
Great work though!

Here is a basic and one of the many methods I use.

Please only follow this if you have basic knowledge of technical’s, if not please practice and use various demo accounts prior to using any professional strategy I suggest. To determine my short/long position on an MT4 chart, I will pull up a 1mintime frame of the pair im trading on a chart. I will then load two MA (moving average) indicators to my chart, the first MA I will load will be on set to period 9 whilst the other I will set to a period of 20. I would also recommend you change the colour of both I usually use green and red.

when I see the down or up trend (depends on cross over) trend occur and my MA crosses over I will enter the trade, I want to be out of this trade in profit at least 2 min before the release. I will have a Stop loss of 15 pips and a TP either when I see the trade looking flat (looking at Volume Bars that is) or when an initial reversal comes to play.

All the best

Stavro D'Amore