Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello
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.
Spike
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
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.
Spike
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
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