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Forex Signal (Thursday October 27, 2011 NY TIME 8:30am EDT) – US Annualized GDP q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Oct 26, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Hello All,

    Today we have US Annualized GDP for release my detailed trade plan is below.

    US Annualized GDP q/q
    Forecast 2.4%
    Previous 2.5%
    Pair to trade: BUY USD/JPY and EUR/USD

    Numbers we need:BUY USD/JPY/ 2.8%
    BUY EUR/USD 2.0%

    Economical Impact: High
    Typical Result: Good for currency
    Occurrence: Quarterly, about 30 days after the quarter ends
    Spike Probability: Good, we can see 50 pips on initial spike

    About our Triggers:
    US Annualized GDP q/q is forecasted to arrive at 2.4%.
    We are looking for a deviation of 0.4% either way on this trade.
    If we get 2.8% or better I will look to enter a LONG position on USD/JPY and if we get 2.0% or lower I will go Long on EUR/USD.
    Should this report be triggered, we can expect to see about 40 to 50 pips on the initial spike.

    Note:
    Please be diligent as we have Jobless claims for release. There may be a slight chance of conflict.


    What is it? And why does the market care?
    See Felix Descriptions

    The GDP Price Index measures the annualized change in the price of all goods and services included in gross domestic product.
    It's the broadest measure of inflation, encompassing all activities included in GDP, and is a primary instrument that the central bank uses to assess inflation.

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


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

    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 close 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

    Historical Chart and Data for US Annualized GDP q/q

    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Oct 26, 2011
    Lasted edited by : Sep 8, 2016
  2. strangelove

    strangelove Recruit

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  3. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    yes some people call it advanced some call it the old name Annualized
     

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