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Forex Signal (Tuesday March 6, 2012 – 7:30PM EDT) – AU GDP q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Mar 6, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please see my trade plan below

    AU GDP q/q
    Forecast 0.7%
    Previous 1.0%
    Pair to trade: AUD/USD

    Numbers we need:
    BUY AUD/USD 1.0%
    SELL AUD/USD 0.4%

    Economical Impact: High
    Typical Result: Good for Currency
    Occurrence 65 days after the month ends
    Spike Probability: Good, we can see 40 pips on initial spike

    About our Triggers:
    AU GDP q/q is forecasted to arrive at 0.7%
    We are looking for a deviation of 0.3% to LONG the AUD and a deviation of -0.3 to SHORT the AUD.
    If the numbers we get 1% or better I will look to enter a LONG position on AUD/USD and if we get 0.4% or worse I will go SHORT on AUD/USD.
    Should this report be triggered, we can expect to see about 40 pips on the initial spike. This trade will have a good chance of a 30% retrace on the initial spike

    What is it? And why does the market care?
    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.

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

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

    See my Euro Crisis Views

    Pre News trading
    Approximately 10 minutes prior to the news release I will be looking for a short term SHORT position in AUD/USD.
    I would be out of this trade 1 minute before the actual release, or to avoid any spreads that should widen.

    After Spike
    I will look for a 30% retracement in the original spike before entering a trade; 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 entry 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.

    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 note
    Australian data is known for Latency should the spike begin and your Auto clicker has not provided a number please cancel your spike trade to avoid yourself getting caught with slippage; you will have a better chance using retracement and pre news methods.

    Historical Chart and Data for AU GDP q/q

    All the best

    Stavro D'Amore
  2. PipDog

    PipDog Corporal

    Jul 25, 2010
    Likes Received:
    Here we go again...

    It looks as if risk is back on big time. Taking a long position in the AU, if the news comes out good and you trade the retrace, would be giving money away.

    I'm short...been going short starting at 1.08. Now the cards have lined up. This could go back to 1.000.

    Minutes post trade: That went well...I got 27 pip on the spike trade on 3 lots. Still holding short from 1.08. Anyone else grab some?
    #2 PipDog, Mar 6, 2012
    Last edited: Mar 6, 2012

    ALDRIN Recruit

    Apr 3, 2011
    Likes Received:
    I made 50 pips in just 1 minute

    thank you so much !!!!!!:)
  4. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:
    That is because you follow the BEST! :p

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