After Spike Trade Plans for Week 23, Jun 4 – Jun 10 2017

[Peter O]

How does after spike forex news trading work?​

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have good trade plans to benefit from price action as they unfold after an ecomonic release. Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. You can find more details at Introduction to Afterspike Trading using Diamonds Trading Signals.

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Hello Fellow Traders,

On this week (June 4 - June 10) we have 5 tradable releases for Diamonds Trading Signals:

⋯⋯⋯⋯⋯ Monday, June 5 ⋯⋯⋯⋯⋯
(brief summary)​

	UK	Services PMI	4:30am NY time
	USA	Non-Manufacturing PMI	10:00am NY time

⋯⋯⋯⋯⋯ Tuesday, June 6 ⋯⋯⋯⋯⋯
(brief summary)​

	Australia	Interest Rate	12:30am NY time
	Australia	GDP	9:30pm NY time

⋯⋯⋯⋯⋯ Thursday, June 8 ⋯⋯⋯⋯⋯
(brief summary)​

EU

Interest Rate

7:45am NY time

Cheers,
Peter

 

[Peter O]

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Diamonds Trading Signals Trade Plan​

UK Services PMI ⋯ 4:30am NY time (Monday, June 5)​

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	Traded currency pair	GBPUSD
	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	20 minutes
	Stop loss	10 pips
	Take profit	10 pips
	Maximum spread	2 pips

1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 04:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of GBPUSD on your chart.
   
   
3. If between 04:30:00am and 04:30:30am, so during the first 30 seconds after the report, you see GBPUSD 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 occurs in 90 seconds from release time (till 04:31:30am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 40% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   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. If your spread at the time of desired entry is more than 2 pips, then skip the trade.
   
   
4. If by 04:50:00am, so 20 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.

Previous Example: on February 5 2013, at 4:30am, UK Services PMI number was released, so in the first 25 seconds, the price of GBPUSD spiked up by 17.9 pips from 1.57757 to 1.57936. Then price started retracing, and within about 80 seconds retraced to 40% level of 1.57864. So you would Buy at 1.57864, set a stop/loss at 1.57764, and set a take/profit at 1.57964. 2 minutes after the report the take/profit was hit yielding 8.0 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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Diamonds Trading Signals Trade Plan​

USA Non-Manufacturing PMI ⋯ 10:00am NY time (Monday, June 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. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 09:59:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDJPY on your chart.
   
   
3. If between 10:00:00am and 10:00:30am, so during the first 30 seconds after the report, 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 occurs in 90 seconds from release time (till 10:01:30am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 40% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   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. If your spread at the time of desired entry is more than 2 pips, then skip the trade.
   
   
4. 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.

Previous Example: on May 3 2012, at 10:00am, USA Non-Manufacturing PMI number was released, so in the first 10 seconds, the price of USDJPY spiked down by 14.1 pips from 80.443 to 80.302. Then price started retracing, and within about 12 seconds retraced to 40% level of 80.358. So you would Sell at 80.358, set a stop/loss at 80.458, and set a take/profit at 80.258. 15 minutes after the report neither take/profit nor stop/loss were hit so position was closed manually at 1.2 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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[Peter O]

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Diamonds Trading Signals Trade Plan​

Australia Interest Rate ⋯ 12:30am NY time (Tuesday, June 6)​

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	Traded currency pair	AUDUSD
	Initial spike duration limit	15 seconds
	Initial spike price action threshold	20 pips
	Triggering retracement percentage	35 %
	Retracement duration limit	60 seconds
	Maximum trade hold time after release	15 minutes
	Stop loss	15 pips
	Take profit	15 pips
	Maximum spread	3 pips

1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 15 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 15 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 12:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of AUDUSD on your chart.
   
   
3. If between 12:30:00am and 12:30:15am, so during the first 15 seconds after the report, you see AUDUSD move up or down by 20 pips or more, then enter in the direction of the initial spike at the very first 35% retracement if it occurs in 60 seconds from release time (till 12:31:00am) – and if spread at the time of your entry is at 3 pips or less. Set stop/loss at 15 pips, and set take/profit at 15 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 35% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   If the move either up or down was less than 20 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. If your spread at the time of desired entry is more than 3 pips, then skip the trade.
   
   
4. If by 12:45:00am, 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.

Previous Example: on November 5 2012, at 10:30pm, Australia Interest Rate number was released, so in the first 10 seconds, the price of AUDUSD spiked up by 38.2 pips from 1.03690 to 1.04072. Then price started retracing, and within about 30 seconds retraced to 35% level of 1.03938. So you would Buy at 1.03938, set a stop/loss at 1.03788, and set a take/profit at 1.04088. 2 minutes after the report the take/profit was hit yielding 12.0 pips of profit, given that your spread at the time of the entry was at exactly 3 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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Diamonds Trading Signals Trade Plan​

Australia GDP ⋯ 9:30pm NY time (Tuesday, June 6)​

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	Traded currency pair	AUDUSD
	Initial spike duration limit	10 seconds
	Initial spike price action threshold	25 pips
	Triggering retracement percentage	30 %
	Retracement duration limit	60 seconds
	Maximum trade hold time after release	20 minutes
	Stop loss	15 pips
	Take profit	15 pips
	Maximum spread	3 pips

1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 15 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 15 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 09:29:45pm, so 15 seconds before the announcement, start paying very close attention to the price action of AUDUSD on your chart.
   
   
3. If between 09:30:00pm and 09:30:10pm, so during the first 10 seconds after the report, you see AUDUSD move up or down by 25 pips or more, then enter in the direction of the initial spike at the very first 30% retracement if it occurs in 60 seconds from release time (till 09:31:00pm) – and if spread at the time of your entry is at 3 pips or less. Set stop/loss at 15 pips, and set take/profit at 15 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 30% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   If the move either up or down was less than 25 pips during the first 10 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade. If your spread at the time of desired entry is more than 3 pips, then skip the trade.
   
   
4. If by 09:50:00pm, so 20 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.

Previous Example: on June 5 2012, at 9:30pm, Australia GDP number was released, so in the first 5 seconds, the price of AUDUSD spiked up by 47.7 pips from 0.97755 to 0.98232. Then price started retracing, and within about 10 seconds retraced to 30% level of 0.98089. So you would Buy at 0.98089, set a stop/loss at 0.97939, and set a take/profit at 0.98239. 1 minutes after the report the take/profit was hit yielding 12.0 pips of profit, given that your spread at the time of the entry was at exactly 3 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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[Peter O]

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Diamonds Trading Signals Trade Plan​

EU Interest Rate ⋯ 7:45am NY time (Thursday, June 8)​

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	Traded currency pair	EURGBP
	Initial spike duration limit	30 seconds
	Initial spike price action threshold	12 pips
	Triggering retracement percentage	45 %
	Retracement duration limit	60 seconds
	Maximum trade hold time after release	20 minutes
	Stop loss	10 pips
	Take profit	10 pips
	Maximum spread	2 pips

1. Set up single click execution on your broker platform, and if possible, pre-determine default stop/loss and default take/profit to 10 pips, so that when you click to execute your order, your platform will automatically set your stop/loss and take/profit at 10 pips from your entry price. Do not try this with brokers that don’t offer single click execution.
   
   If your platform does not allow to pre-determine default stop/loss and take/profit, then after entering the trade, simply set the stop/loss and take/profit points manually.
   
   
2. Pull up either tick, 1-second, 3-second, or 5-second chart, and at 07:44:45am, so 15 seconds before the announcement, start paying very close attention to the price action of EURGBP on your chart.
   
   
3. If between 07:45:00am and 07:45:30am, so during the first 30 seconds after the report, you see EURGBP move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 45% retracement if it occurs in 60 seconds from release time (till 07:46:00am) – and if spread at the time of your entry is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips.
   
   The retracement will happen within seconds. Don’t draw anything on your chart, and don’t try to get a perfect entry. As soon as you see approximately 45% retracement on your chart, compared to the initial spike, click to enter without any hesitation.
   
   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. If your spread at the time of desired entry is more than 2 pips, then skip the trade.
   
   
4. If by 08:05:00am, so 20 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.

Previous Example: on September 6 2012, at 7:45am, EU Interest Rate number was released, so in the first 30 seconds, the price of EURGBP spiked up by 14.4 pips from 0.79289 to 0.79433. Then price started retracing, and within about 40 seconds retraced to 45% level of 0.79368. So you would Buy at 0.79368, set a stop/loss at 0.79268, and set a take/profit at 0.79468. 1 minutes after the report the take/profit was hit yielding 8.0 pips of profit, given that your spread at the time of the entry was at exactly 2 pips.


Be patient, and do at least 20 "second wave" trades, before getting frustrated and quitting.

Once you become good at it, you will be able to win on average 7 to 8 out of 10 trades.

Keep win to loss ratio at 1:1. Tweak it only after you are consistently profitable with 1:1.

Remember, it does not matter whether you make or lose 10 pips or 100 pips on a trade. What matters is how much money you make or lose on a trade. When risking 10 pips, simply put up 10 times more lots than you would when you risk 100 pips, and at the end you will make or lose the same amount of money. Yes, spread to pips targeted ratio matters, but these news "second wave" moves have such high probability of success that they somehow make up for the very high spread to pips targeted ratio (2 to 10), which is a small miracle in itself.

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[Joh]

Thank you Peter,
They look a good bunch of trades, here's to all of us

 

[jokondo]

Thank You for keep posting for us. Is that 1 second chart really necessary?
Can we just use 1minute chart?
Or there should be some modification if using 1 minutes chart?

 

[waker240]

Thank You for keep posting for us. Is that 1 second chart really necessary?
Can we just use 1minute chart?
Or there should be some modification if using 1 minutes chart?

1s chart is unnecessary; for me, on the mt4 platform, I use 5 min chart, draw a line(vertical trendline) of 15 pips beforehand(for comparison purpose), when spike happens, I use that line for reference and see if the spike exceeds it, if it does, I wait for pullback(also using the line for reference; 30% at around 1/3 of the line. 50% ->1/2 of the line) and trade.
If you use a tick chart, how are you supposed to know if it actually exceeds 15pips? especially difficult(at least visually not fast enough imo) if your chart auto scales and the scale changes as the price action moves.

 

[jokondo]

1s chart is unnecessary; for me, on the mt4 platform, I use 5 min chart, draw a line(vertical trendline) of 15 pips beforehand(for comparison purpose), when spike happens, I use that line for reference and see if the spike exceeds it, if it does, I wait for pullback(also using the line for reference; 30% at around 1/3 of the line. 50% ->1/2 of the line) and trade.
If you use a tick chart, how are you supposed to know if it actually exceeds 15pips? especially difficult(at least visually not fast enough imo) if your chart auto scales and the scale changes as the price action moves.

Thank a lot for the suggestion. Will do on the next after spike

 

[waker240]

Thank a lot for the suggestion. Will do on the next after spike

Sorry, I made a mistake. At the pullback I use the CANDLE rather than the drawn line for reference to the percentage pullback; the pullback refers to that of the SPIKE, which is dynamic, rather the fixed 15 or 10 pips.

I use the drawn line only for the first step, which is to see if the candle is actually longer it within given time(for time, in mt4, i watch the clock on the "market watch: xx:xx:xx", located on the left side of mt4.) if time exceeds the given signal time frame -> no trade.