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Forex Signal (Wednesday August 31, 2011 – 8:30am EDT) – CA GDP m/m

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Aug 30, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
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    Hello members,

    I have the following trade plan for you to share:

    Canadian GDP m/m
    Forecast 0.2%
    Previous -0.3%
    Pair to trade: USD/CAD


    Numbers we need:
    BUY USD/CAD -0.5% or Worse
    SELL USD/CAD -0.1% or Better


    Economical Impact: High
    Typical Result: Good for Currency
    Occurrence: 60 days after the month ends
    Spike Probability: Good, we can see 30 pips on initial spike

    About our Triggers:
    CA GDP m/m is forecasted to arrive at -0.3%
    We are looking for a deviation of 0.2% either way on this trade.
    If we get -0.1% or better I will look to enter a SHORT position on USD/CAD and if we get
    -0.5% or worse I will go LONG on USD/CAD.
    Should this report be triggered, we can expect to see about 30 pips on the initial spike. We have no known conflict for this release. This trade will have a good chance of a 50% 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. Canada releases fresh GDP data on a monthly basis. The monthly 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 CAD
    A lower than expected reading should be taken as negative/bearish for the CAD.

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

    I will look for a 30-50% 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.

    Historical Chart and Data for CA GDP

    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Aug 30, 2011
    Lasted edited by : Sep 8, 2016
  2. wade pugsley

    wade pugsley Private

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    Stavro,

    I don't think you're numbers are correct, or at least conflict with the calendar at forex razor. CA GDP is forecast at 0.2 not -0.3 as indicated in your trade plan

    Am I missing something? Is the forecast different somewhere else? Is forex razor's information incorrect?

    This is quite a difference.
     

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