After Spike Trade Plans for Week 27, Jun 28 – Jul 4 2020

Peter O

Special Consultant to the FPA
Messages
3,556

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.
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Hi Fellow Traders,

On this week (June 28 - July 4) we have 5 tradable releases for Diamonds Trading Signals:


⋯⋯⋯⋯⋯ Tuesday, June 30 ⋯⋯⋯⋯⋯

CanadaGDP8:30am NY time


⋯⋯⋯⋯⋯ Wednesday, July 1 ⋯⋯⋯⋯⋯

USAADP Nonfarm Payroll8:15am NY time
USAManufacturing PMI10:00am NY time


⋯⋯⋯⋯⋯ Thursday, July 2 ⋯⋯⋯⋯⋯

USANonfarm Payroll8:30am NY time


⋯⋯⋯⋯⋯ Friday, July 3 ⋯⋯⋯⋯⋯

UKServices PMI4:30am NY time



Cheers,
Peter
 

Peter O

Special Consultant to the FPA
Messages
3,556

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Diamonds Trading Signals Trade Plan

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

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Traded currency pairUSDCAD
Initial spike duration limit15 seconds
Initial spike price action threshold12 pips
Triggering retracement percentage30 %
Retracement duration limit40 seconds
Maximum trade hold time after release10 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 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.


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Peter O

Special Consultant to the FPA
Messages
3,556

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Diamonds Trading Signals Trade Plan

USA ADP Nonfarm Payroll ⋯ 8:15am NY time (Wednesday, July 1)

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Traded currency pairUSDJPY
Initial spike duration limit15 seconds
Initial spike price action threshold15 pips
Triggering retracement percentage40 %
Retracement duration limit40 seconds
Maximum trade hold time after release15 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 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 08:14:45am, so 15 seconds before the announcement, start paying very close attention to the price action of USDJPY on your chart.

  3. If between 08:15:00am and 08:15:15am, so during the first 15 seconds after the report, you see USDJPY move up or down by 15 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it occurs in 40 seconds from release time (till 08:15:40am) – 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 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 15 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 08:30:00am, 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 July 5 2012, at 8:15am, USA ADP Nonfarm Payroll number was released, so in the first 7 seconds, the price of USDJPY spiked down by 79591.1 pips from 79671.0 to 79.9. Then price started retracing, and within about 25 seconds retraced to 100% level of 79826.0. So you would Sell at 79826.0, set a stop/loss at 79836.0, and set a take/profit at 79816.0. 7 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 Manufacturing PMI ⋯ 10:00am NY time (Wednesday, July 1)

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Traded currency pairUSDJPY
Initial spike duration limit15 seconds
Initial spike price action threshold10 pips
Triggering retracement percentage50 %
Retracement duration limit60 seconds
Maximum trade hold time after release15 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 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 10:00:15am, so during the first 15 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 50% retracement if it occurs in 60 seconds from release time (till 10:01:00am) – 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 50% 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 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 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 February 1 2013, at 10:00am, USA Manufacturing PMI number was released, so in the first 3 seconds, the price of USDJPY spiked down by 91952.8 pips from 92045.0 to 92.2. Then price started retracing, and within about 12 seconds retraced to 100% level of 92118.0. So you would Sell at 92118.0, set a stop/loss at 92128.0, and set a take/profit at 92108.0. 12 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.


⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
 
Last edited:

Peter O

Special Consultant to the FPA
Messages
3,556

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Diamonds Trading Signals Trade Plan

USA Nonfarm Payroll ⋯ 8:30am NY time (Thursday, July 2)

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Traded currency pairUSDJPY
Initial spike duration limit30 seconds
Initial spike price action threshold25 pips
Triggering retracement percentage30 %
Retracement duration limit90 seconds
Maximum trade hold time after release15 minutes
Stop loss15 pips
Take profit15 pips
Maximum spread3 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 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 25 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 08:31:30am) – 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 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 3 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 December 7 2012, at 8:30am, USA Nonfarm Payroll number was released, so in the first 12 seconds, the price of USDJPY spiked up by 452.0 pips from 82321.0 to 82773.0. Then price started retracing, and within about 60 seconds retraced to 30% level of 82637.0. So you would Buy at 82637.0, set a stop/loss at 82622.0, and set a take/profit at 82652.0. 3 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.


⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯⋯​
 
Last edited:

Peter O

Special Consultant to the FPA
Messages
3,556

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Diamonds Trading Signals Trade Plan

UK Services PMI ⋯ 4:30am NY time (Friday, July 3)

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Traded currency pairGBPUSD
Initial spike duration limit30 seconds
Initial spike price action threshold12 pips
Triggering retracement percentage40 %
Retracement duration limit90 seconds
Maximum trade hold time after release20 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 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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