Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello
Please see my trade plan below
AU GDP q/q
Forecast 0.7%
Previous 1.0%
Pair to trade: AUD/USD
Numbers we need:
BUY AUD/USD 1.0%
SELL AUD/USD 0.4%
Economical Impact: High
Typical Result: Good for Currency
Occurrence 65 days after the month ends
Spike Probability: Good, we can see 40 pips on initial spike
About our Triggers:
AU GDP q/q is forecasted to arrive at 0.7%
We are looking for a deviation of 0.3% to LONG the AUD and a deviation of -0.3 to SHORT the AUD.
If the numbers we get 1% or better I will look to enter a LONG position on AUD/USD and if we get 0.4% or worse I will go SHORT on AUD/USD.
Should this report be triggered, we can expect to see about 40 pips on the initial spike. This trade will have a good chance of a 30% 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. The quarterly 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 AUD.
A lower than expected reading should be taken as negative/bearish for the AUD.
Method I use to trade this:
Stavro D’Amore Trading Method
See my Euro Crisis Views
Pre News trading
Approximately 10 minutes prior to the news release I will be looking for a short term SHORT position in AUD/USD.
I would be out of this trade 1 minute before the actual release, or to avoid any spreads that should widen.
After Spike
I will look for a 30% 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.
Spike
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.
Please note
Australian data is known for Latency should the spike begin and your Auto clicker has not provided a number please cancel your spike trade to avoid yourself getting caught with slippage; you will have a better chance using retracement and pre news methods.
Historical Chart and Data for AU GDP q/q
All the best
Stavro D'Amore
Please see my trade plan below
AU GDP q/q
Forecast 0.7%
Previous 1.0%
Pair to trade: AUD/USD
Numbers we need:
BUY AUD/USD 1.0%
SELL AUD/USD 0.4%
Economical Impact: High
Typical Result: Good for Currency
Occurrence 65 days after the month ends
Spike Probability: Good, we can see 40 pips on initial spike
About our Triggers:
AU GDP q/q is forecasted to arrive at 0.7%
We are looking for a deviation of 0.3% to LONG the AUD and a deviation of -0.3 to SHORT the AUD.
If the numbers we get 1% or better I will look to enter a LONG position on AUD/USD and if we get 0.4% or worse I will go SHORT on AUD/USD.
Should this report be triggered, we can expect to see about 40 pips on the initial spike. This trade will have a good chance of a 30% 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. The quarterly 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 AUD.
A lower than expected reading should be taken as negative/bearish for the AUD.
Method I use to trade this:
Stavro D’Amore Trading Method
See my Euro Crisis Views
Pre News trading
Approximately 10 minutes prior to the news release I will be looking for a short term SHORT position in AUD/USD.
I would be out of this trade 1 minute before the actual release, or to avoid any spreads that should widen.
After Spike
I will look for a 30% 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.
Spike
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.
Please note
Australian data is known for Latency should the spike begin and your Auto clicker has not provided a number please cancel your spike trade to avoid yourself getting caught with slippage; you will have a better chance using retracement and pre news methods.
Historical Chart and Data for AU GDP q/q
All the best
Stavro D'Amore
