Forex Trading Signals Summary - Friday, March 20 2015

[Peter O]

What is news trading? How does forex news trading work?​

Forex News Trading can be extremely profitable if you have an understanding of fundamental analysis and have access to low latency forex trading software. Sounds too complex or expensive? Do not worry, Forex Peace Army analyst will help you to identify high-probability tradable economic news reports and advise on the trading strategy. Best of all: Forex News Gun - automated forex trading software is free for all. You find all details on Forex News Gun forum and if you want make pips easier you can find additional tools at Forex Tactical Squad.

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Forex News Gun Trade Plan

Canada Core Retail Sales - 8:30am NY time (Friday, March 20)

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	Traded pair	Expected figure	Deviation trigger
	USDCAD	-0.5 (%)	±0.5 (%)

	Buy	USDCAD	if actual figure is or is below	-1.0 (%)
	Sell	USDCAD	if actual figure is or is above	0.0 (%)

Expected move during first 30 minutes after the release is 30 pips or more.


Review historical charts where the same deviation of at least 0.5 (%) occurred:

Canada Core Retail Sales history of charts.


To review Forex News Gun step by step trade plan go to weekly detailed posts.


--–––––————— FNG Configuration —————–––––--

Release name in FNG client: STCA Canada Retail Sales Ex Mo

Clicks: first row is for Buy USDCAD button, second one is for Sell USDCAD button:




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O O O
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Diamonds Trading Signals Trade Plan

Canada Core Retail Sales - 8:30am NY time (Friday, March 20)

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	Traded currency pair	:	USDCAD
	Initial spike duration limit	:	30 seconds
	Initial spike price action threshold	:	12 pips
	Triggering retracement percentage	:	40 %
	Retracement duration limit	:	60 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	10 pips
	Take profit	:	10 pips
	Maximum spread	:	2 pips

1. If between 08:30:00am and 08:30:30am, so during the first 30 seconds you see USDCAD move up or down by 12 pips or more, then enter in the direction of the initial spike at the very first 40% retracement if it doesn't take more than 60 seconds (till 08:31:00am) – and if spread is at 2 pips or less. Set stop/loss at 10 pips, and set take/profit at 10 pips immediately.
   
   
2. If the move either up or down was less than 12 pips during the first 30 seconds, then the actual number of the report did not generate sufficient interest in the market, and you simply skip the trade.
   
   
3. If by 08:45:00am, so 15 minutes after the report release, neither your stop/loss nor your take/profit points were hit, then close the trade automatically at market price of the time.

To review Diamonds Trading Signals more detailed trade plan go to weekly posts.

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[beero94]

hey peter... i see expected figure as -0.5 can you chek this out and let me know please... Thanks

 

[Peter O]

Thanks! Yup, I used wrong number. Fixed!

 

[beero94]

all good... whish yout the best luck for tomorow!

 

[iTrader777]

Hello! What about another important piece of news that comes out at the same time?
Core CPI (MoM) (Feb) ==== Canada Core Consumer Price Index (CPI) MoM
HOW TO AVOID CONFLICT?

 

[Peter O]

Hello! What about another important piece of news that comes out at the same time?
Core CPI (MoM) (Feb) ==== Canada Core Consumer Price Index (CPI) MoM
HOW TO AVOID CONFLICT?

A while ago it seemed to be a good idea to handle multiple high impact events with an advanced version of FNG. Well, it's still appealing to a degree, however, imho it's not terribly important. Consider this: approximately 1 of 4 event is triggering according to my conservative trade plans, so the probability when two important events trigger at the same time is about 1:16. And it's even rarer to get conflicting figures (1:32?). If I wanted to consider both events at trigger evaluation, I would need to wait for the second one, so it would impose additional latency anyway. So the probability chart is this (supposing 1:4 ratio):

75% : no trade
18.75% : only one triggers
3.125% : two triggering events but no conflict
3.125% : two triggering events and conflict

that is:
favorable : conflicting = 3.125% : 21.875% = 1:7

And this comes up only when there are potentially conflicting announcements. Considering the necessary latency when evaluating both events before entering the market, and the fact that in conflicting (whipsaw) cases market would't be supposed to go directly to the opposite direction (b/e is fairly possible), I say it's a manageable risk.