Forex Trading Signal 09/08/09

Crazy Cat

Former FPA Special Consultant

Sir Pips is taking off as his wife is just about to deliver a child... wish both of them good luck.

Sterling Suhr from the Diamonds room is typing the signal today:

Tuesdays news:

Industrial Production m/m - The way I see this trade is that it leaves us with three options based on the short term trend going into the news, and your form of trading.

1.) If you are a spike trader and can get filled on the spike the triggers below should hold. I do recommend getting out within the first minute after pre-release.
2.) Look at the short term trend starting at 2AM EST and if it spikes in the direction on the trend, I recommend trying to get in within 5 pips of pre-release with a very tight stop. This indicator has a history of reversing and so a tight stop is mandatory for this option.
3.) Option 3 is my favorite. As an example lets say the GBP/USD is trending up short term going into the news. If the news were to come out lower than expected it would spike against the trend...I would recommend betting against the news and going with the trend once the first 1 minute bar closes. This is the strategy I will be using in the room for the most part to trade this report. This option is the best bet because it factors in that this report historically likes to reverse as of the past few months, and second you will be getting in with the trend at a better price. The trend usually wins on these smaller reports and so trend going in and your trading style should determine which option you choose.

If it comes out +.8 or higher, the GBP/USD should rally 20-30 pips.
If it comes out -.4 or lower, the GBP/USD should sell off 20-30 pips.

Sir Pipsalot has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $39.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.

Happy Trading,
-Sterling Suhr