Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello everyone,
Please see my trade plan below.
I hope you find this information I provide you is very useful, I would like to thank everyone for their kind support over the past year and reading my material. I hope it has made a difference to you as a trader.
US Prelim GDP q/q
Forecast 2.5%
Previous 3.0%
Pair to trade: EUR/USD
Numbers we need:
BUY EUR/USD 2.4%
SELL EUR/USD 3.3%
Economical Impact: High
Typical Result: Good for currency - While this is the ‘usual’ effect, under current market conditions the reverse tends to be true against some currencies. As bad data has been triggering the purchase of US bonds, I will trade EUR/USD and not consider USD/JPY on this trade.
Occurrence: Released quarterly, about 60 days after the quarter ends
Spike Probability: Good, we can see 45 pips on initial spike
About our Triggers:
US advance GDP q/q is forecasted to arrive at 2.5%.
We are looking for a deviation of - 0.2% to Buy EUR/USD and a deviation of + 0.4% to SELL EUR/USD.
Should this report be triggered, we can expect to see about 45 pips 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. While this is q/q data, it's reported in an annualized format (quarterly change x4). The 'Previous' listed is the 'Actual' from the Advance release and therefore the 'History' data will appear unconnected. There are 3 versions of GDP released a month apart - Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact.
A higher than expected reading should be taken as positive/bullish for the USD,
A lower than expected reading should be taken as negative/bearish for the USD.
Method I use to trade this:
Stavro D’Amore Trading Method
Pre News
I will look for a short sell in EUR/USD 30min before this release and be out 5 min before the actual release.
After Spike
I will look for a 25% retracement in the original spike before entering. I will be looking at a 5 minute chart. 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 the original spike 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 to analyse this.
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 use no more than 12 pip limit order.
Historical Chart and Data for US Prelim GDP q/q
All the best
Stavro D’Amore
Please see my trade plan below.
I hope you find this information I provide you is very useful, I would like to thank everyone for their kind support over the past year and reading my material. I hope it has made a difference to you as a trader.
US Prelim GDP q/q
Forecast 2.5%
Previous 3.0%
Pair to trade: EUR/USD
Numbers we need:
BUY EUR/USD 2.4%
SELL EUR/USD 3.3%
Economical Impact: High
Typical Result: Good for currency - While this is the ‘usual’ effect, under current market conditions the reverse tends to be true against some currencies. As bad data has been triggering the purchase of US bonds, I will trade EUR/USD and not consider USD/JPY on this trade.
Occurrence: Released quarterly, about 60 days after the quarter ends
Spike Probability: Good, we can see 45 pips on initial spike
About our Triggers:
US advance GDP q/q is forecasted to arrive at 2.5%.
We are looking for a deviation of - 0.2% to Buy EUR/USD and a deviation of + 0.4% to SELL EUR/USD.
Should this report be triggered, we can expect to see about 45 pips 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. While this is q/q data, it's reported in an annualized format (quarterly change x4). The 'Previous' listed is the 'Actual' from the Advance release and therefore the 'History' data will appear unconnected. There are 3 versions of GDP released a month apart - Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact.
A higher than expected reading should be taken as positive/bullish for the USD,
A lower than expected reading should be taken as negative/bearish for the USD.
Method I use to trade this:
Stavro D’Amore Trading Method
Pre News
I will look for a short sell in EUR/USD 30min before this release and be out 5 min before the actual release.
After Spike
I will look for a 25% retracement in the original spike before entering. I will be looking at a 5 minute chart. 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 the original spike 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 to analyse this.
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 use no more than 12 pip limit order.
Historical Chart and Data for US Prelim GDP q/q
All the best
Stavro D’Amore
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