Hello Fellow Traders,
Here are Diamonds Trading Signal after-spike trade plan parameters for this release:
USA Manufacturing PMI > 10:00am NY time
[TD="width: 210"]Traded currency pair[/TD]
[TD="width: 20"]:[/TD]
[TD="width: 100"]USDJPY[/TD]
[/TR]
[TR]
[TD]Initial spike duration limit[/TD]
[TD]:[/TD]
[TD]1 minute[/TD]
[/TR]
[TR]
[TD]Initial spike price action threshold[/TD]
[TD]:[/TD]
[TD]15 pips[/TD]
[/TR]
[TR]
[TD]Triggering retracement percentage[/TD]
[TD]:[/TD]
[TD]38 %[/TD]
[/TR]
[TR]
[TD]Retracement duration limit[/TD]
[TD]:[/TD]
[TD]15 minutes[/TD]
[/TR]
[TR]
[TD]Release effective duration[/TD]
[TD]:[/TD]
[TD]50 minutes[/TD]
[/TR]
Trade plan for Diamonds Trading Signal:
- Open 1-minute or more detailed USDJPY chart and draw a horizontal trend line at the prerelease price level - where the price is right before the announcement.
- Identify the 1 minute spike. If price moves dominantly in one direction and price change is more than 15 pips then it's a significant spike and we go on with trade plan otherwise don't trade this release.
- Wait for the 38% retracement for 15 minutes. If price doesn't hit 38% retracement during that time then don't trade this release. Otherwise enter the market in the direction of the spike, and set the stop loss below the prerelease level by 3 pips for a buy trade and by 3 pips above for a sell. Take profit will be at the same distance in pips from open price as the stop loss (our risk reward ratio is 1).
- At 10:50am NY time - that is 50 minutes after the release time - check whether stop loss or take profit has triggered. If neither and trade is in positive then either close it or move stop loss to break even. If it's in negative then close the position.
Find other details or navigate here:
>> Forex News Gun: Go to this release's FNG spike trade plan details
>> (No more tradable releases today.)
>> Go to daily release summary
>> Go to weekly release preview
>> Open release history in calendar
>> What is FNG and DTS? Go to the Introduction.
Sincerely,
Peter
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