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Forex Signal (Tuesday September 6, 2011 – 9:30PM EDT) – AU GDP q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Sep 5, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please see my AU GDP q/q trade plan bellow:

    AU GDP q/q
    Forecast 1.0%
    Previous 1.2%
    Pair to trade: AUD/USD

    Numbers we need:
    BUY AUD/USD 1.3%
    SELL AUD/USD 0.5%

    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 1.0%
    We are looking for a deviation of 0.3% to LONG the AUD and a deviation of 0.5 to SHORT the AUD.
    If the numbers we get 1.3% or better I will look to enter a LONG position on AUD/USD and if we get 0.5% 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

    Pre News trading
    Approximately 5 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
    #1 Stavro D'Amore, Sep 5, 2011
    Lasted edited by : Sep 8, 2016

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