1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

After Spike Trade Plans for Week 26, Jun 23 – Jun 29 2019

Discussion in 'Current Forex Trading Signals' started by Peter O, Jun 22, 2019.

  1. Peter O

    Peter O Special Consultant to the FPA

    Joined:
    Jan 14, 2013
    Messages:
    3,247
    Likes Received:
    1,397

    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 economic 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.
    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯

    Hello Fellow Traders,

    On this week (June 23 - June 29) we have 3 tradable releases for Diamonds Trading Signals:


    ⋯⋯⋯⋯⋯ Thursday, June 27 ⋯⋯⋯⋯⋯

    USA GDP 8:30am NY time

    ⋯⋯⋯⋯⋯ Friday, June 28 ⋯⋯⋯⋯⋯

    UK GDP 4:30am NY time
    Canada GDP 8:30am NY time


    Cheers,
    Peter
     
    Joh likes this.
  2. Peter O

    Peter O Special Consultant to the FPA

    Joined:
    Jan 14, 2013
    Messages:
    3,247
    Likes Received:
    1,397

    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Diamonds Trading Signals Trade Plan​

    USA GDP ⋯ 8:30am NY time (Thursday, June 27)

    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Traded currency pair USDJPY
    Initial spike duration limit 30 seconds
    Initial spike price action threshold 10 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 08:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDJPY on your chart.

    3. If between 08:30:00am and 08:30:30am, so during the first 30 seconds after the report, you see USDJPY move up or down by 10 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 08:31:30am) – 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 10 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 08:45:00am, 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 October 26 2012, at 8:30am, USA GDP number was released, so in the first 50 seconds, the price of USDJPY spiked up by 139.0 pips from 79847.0 to 79986.0. Then price started retracing, and within about 30 seconds retraced to 29% level of 79945.0. So you would Buy at 79945.0, set a stop/loss at 79935.0, and set a take/profit at 79955.0. 3 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.


    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
     
    Joh likes this.
  3. Peter O

    Peter O Special Consultant to the FPA

    Joined:
    Jan 14, 2013
    Messages:
    3,247
    Likes Received:
    1,397

    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Diamonds Trading Signals Trade Plan​

    UK GDP ⋯ 4:30am NY time (Friday, June 28)

    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Traded currency pair GBPUSD
    Initial spike duration limit 20 seconds
    Initial spike price action threshold 20 pips
    Triggering retracement percentage 30 %
    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 04:30:20am, so during the first 20 seconds after the report, you see GBPUSD move up or down by 20 pips or more, then enter in the direction of the initial spike at the very first 30% 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 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 20 pips during the first 20 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 January 25 2013, at 4:30am, UK GDP number was released, so in the first 20 seconds, the price of GBPUSD spiked down by 42.1 pips from 1.58097 to 1.57676. Then price started retracing, and within about 90 seconds retraced to 20% level of 1.57759 but it didn't continue retracing. This retracement was lower than trade plan's minimal 30% level so we didn't enter the market.


    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.


    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯
    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Diamonds Trading Signals Trade Plan​

    Canada GDP ⋯ 8:30am NY time (Friday, June 28)

    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​

    Traded currency pair USDCAD
    Initial spike duration limit 15 seconds
    Initial spike price action threshold 12 pips
    Triggering retracement percentage 30 %
    Retracement duration limit 40 seconds
    Maximum trade hold time after release 10 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 08:29:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDCAD on your chart.

    3. If between 08:30:00am and 08:30:15am, so during the first 15 seconds after the report, you see USDCAD move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 30% retracement if it occurs in 40 seconds from release time (till 08:30:40am) – 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 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 12 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 2 pips, then skip the trade.

    4. If by 08:40:00am, so 10 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 April 30 2012, at 8:30am, Canada GDP number was released, so in the first 7 seconds, the price of USDCAD spiked up by 20.7 pips from 0.98297 to 0.98504. Then price started retracing, and within about 11 seconds retraced to 30% level of 0.98441. So you would Buy at 0.98441, set a stop/loss at 0.98341, and set a take/profit at 0.98541. 3 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.


    ⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
     
    Joh likes this.

Share This Page