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Forex Signal (Friday February 24, 2012 NY TIME 4:30am EDT) – UK Revised GDP q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Feb 23, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Hello All,

    Hope you are all well, please find the news release for our last signal of the week.

    UK Revised GDP q/q
    Forecast -0.2%
    Previous -0.2%
    Pair to trade: GBP/USD

    Numbers we need:
    BUY GBP/USD 0.1%
    SELL GBP/USD -0.4%

    Economic Impact: High
    Typical Result: Good for currency
    Occurrence: Quarterly, about 55 days after the quarter ends
    Spike Probability: Good, we can see 35 pips on initial spike

    About our Triggers:
    UK Revised GDP q/q is forecasted to arrive at -0.2%.
    We are looking for a deviation of 0.2% to sell GBP/USD and +0.3 to BUY GBP/USD
    If we get 0.1% or better I will look to enter a LONG position on GBP/USD and if we get
    -0.4% or lower I will go SHORT on GBP/USD.
    Should this report be triggered, we can expect to see about 35 to 40 pips on the initial spike .

    What is it? And why does the market care?
    It's the broadest measure of economic activity and the primary gauge of the economy's health. The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy's health. The quarterly percent changes in GDP shows the growth rate of the economy as a whole.

    The 'Previous' listed is the 'Actual' from the Preliminary release and therefore the 'History' data will appear unconnected. There are 3 versions of GDP released a month apart - Preliminary, Revised, and Final. The Preliminary release is the earliest and thus tends to have the most impact.

    A higher than expected reading should be taken as positive/bullish for the GBP
    A lower than expected reading should be taken as negative/bearish for the GBP

    Method I use to trade this:
    Stavro D’Amore Trading Method

    See my Euro Crisis and analysis

    I will look for a 30% to 50% retracement in the original spike before entering. I will be looking at a 5 minute chart. I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at the original spike price.

    My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame to analyse this.

    I do recommend spike trading as an option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you are using an ECN broker. Please use no more than 15 pip limit order.

    Historical Chart and Data for UK Revised GDP q/q

    All the best

    Stavro D’Amore
     
  2. Le Roux

    Le Roux Private

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    Agree, we will get 0.1% or better ;)
     
  3. inclouis

    inclouis Recruit

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    Hi guys, may I know what is 0.1% or -0.4#? Where do you see this figure in MT4? It means what price? Sorry I'm new. Cheers
     
  4. Jyotiprakash Pal

    Jyotiprakash Pal Sergeant

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    Hi ... Stavro sir allready explained what is this ..


    What is it? And why does the market care?
    It's the broadest measure of economic activity and the primary gauge of the economy's health. The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy's health. The quarterly percent changes in GDP shows the growth rate of the economy as a whole.

    The 'Previous' listed is the 'Actual' from the Preliminary release and therefore the 'History' data will appear unconnected. There are 3 versions of GDP released a month apart - Preliminary, Revised, and Final. The Preliminary release is the earliest and thus tends to have the most impact.

    A higher than expected reading should be taken as positive/bullish for the GBP
    A lower than expected reading should be taken as negative/bearish for the GBP


    And u can't get the figure on Mt4 ... u need to check http://www.forexpeacearmy.com/forex_news_calendar/ this link frequently for the data's u require
     

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