Diamonds Trading Signals Summary - Friday, February 16 2024

Peter O

Special Consultant to the FPA

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.


Diamonds Trading Signals Trade Plan

UK Retail Sales ⋯ 2:00am NY time (Friday, February 16)


Traded currency pairGBPUSD
Initial spike duration limit15 seconds
Initial spike price action threshold12 pips
Triggering retracement percentage35 %
Retracement duration limit40 seconds
Maximum trade hold time after release10 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 pips

  1. If between 02:00:00am and 02:00:15am, so during the first 15 seconds 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 35% retracement if it doesn't take more than 40 seconds (till 02:00:40am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.

  2. 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.

  3. If by 02:10:00am, 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.

To review Diamonds Trading Signals more detailed trade plan go to weekly posts.