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
Canada Core Retail Sales ⋯ 8:30am NY time (Tuesday, October 22)
|Traded currency pair||USDCAD|
|Initial spike duration limit||30 seconds|
|Initial spike price action threshold||12 pips|
|Triggering retracement percentage||40 %|
|Retracement duration limit||60 seconds|
|Maximum trade hold time after release||15 minutes|
|Stop loss||10 pips|
|Take profit||10 pips|
|Maximum spread||2 pips|
- If between 08:30:00am and 08:30:30am, so during the first 30 seconds 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 40% retracement if it doesn't take more than 60 seconds (till 08:31:00am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
- 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 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.