Forex Trading Signals Summary - Tuesday, January 14 2014

[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

UK CPI - 4:30am NY time (Tuesday, January 14)

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	Traded pair	Expected figure	Deviation trigger
	GBPUSD	2.1 (%)	±0.3 (%)

	Buy	GBPUSD	if actual figure is or is above	2.4 (%)
	Sell	GBPUSD	if actual figure is or is below	1.8 (%)

Expected move during first 30 minutes after the release is 20 pips or more.


Review historical charts where the same deviation of at least 0.3 (%) occurred:

UK CPI history of charts.

Once there, set filter to Difference Actual-Forecast >= 0.3 and click "Filter" to see list of charts.


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


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

Release name in FNG client: UK CPI EU Harmonized YoY

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




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O O O
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Diamonds Trading Signals Trade Plan

UK CPI - 4:30am NY time (Tuesday, January 14)

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	Traded currency pair	:	GBPUSD
	Initial spike duration limit	:	20 seconds
	Initial spike price action threshold	:	15 pips
	Triggering retracement percentage	:	50 %
	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 04:30:00am and 04:30:20am, so during the first 20 seconds you see GBPUSD move up or down by 15 pips or more, then enter in the direction of the initial spike at the very first 50% retracement if it doesn't take more than 60 seconds (till 04:31:00am) – 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 15 pips during the first 20 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 04:45:00am, 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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O O O
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Forex News Gun Trade Plan

USA Core Retail Sales - 8:30am NY time (Tuesday, January 14)

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	Traded pair	Expected figure	Deviation trigger
	USDJPY	0.4 (%)	±0.5 (%)

	Buy	USDJPY	if actual figure is or is above	0.9 (%)
	Sell	USDJPY	if actual figure is or is below	-0.1 (%)

Expected move during first 30 minutes after the release is 20 pips or more.


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

USA Core Retail Sales history of charts.

Once there, set filter to Difference Actual-Forecast >= 0.5 and click "Filter" to see list of charts.


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


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

Release name in FNG client: US Adjusted Retail Sales Less Autos

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




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O O O
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Diamonds Trading Signals Trade Plan

USA Core Retail Sales - 8:30am NY time (Tuesday, January 14)

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	Traded currency pair	:	USDJPY
	Initial spike duration limit	:	15 seconds
	Initial spike price action threshold	:	8 pips
	Triggering retracement percentage	:	35 %
	Retracement duration limit	:	40 seconds
	Maximum trade hold time after release	:	15 minutes
	Stop loss	:	8 pips
	Take profit	:	8 pips
	Maximum spread	:	2 pips

1. If between 08:30:00am and 08:30:15am, so during the first 15 seconds you see USDJPY move up or down by 8 pips or more, then enter in the direction of the initial spike at the very first 35% retracement if it doesn't take more than 40 seconds (till 08:30:40am) – and if spread is at 2 pips or less. Set stop/loss at 8 pips, and set take/profit at 8 pips immediately.
   
   
2. If the move either up or down was less than 8 pips during the first 15 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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[Exoskeletor]

im trying to understand something:
the plan: "1. If between 08:30:00am and 08:30:15am, so during the first 15 seconds you see USDJPY move up or down by 8 pips or more, then enter...."
is if we dont want to use the forex news gun and we want to initiate the order by ourselfs?
what do you mean enter in the direction of the initial spike?.
if for example in this test in the first 15 seconds the price is changed more than 8 pips, then we have to wait until the 35% of the spike (that must be done before 40 seconds) and to enter our order? (of course in the direction of the retracement trend am i right?)
the US Adjusted Retail Sales Less Autos move the market for 20 pips and then the retracement was 100%, but it wasnt trigerred, why?

 

[Rip Forex]

In My Opinion, Trading on the News only works good about 75% of the time, and then you have to be ON IT quick.

 

[Peter O]

im trying to understand something:
the plan: "1. If between 08:30:00am and 08:30:15am, so during the first 15 seconds you see USDJPY move up or down by 8 pips or more, then enter...."
is if we dont want to use the forex news gun and we want to initiate the order by ourselfs?
what do you mean enter in the direction of the initial spike?.
if for example in this test in the first 15 seconds the price is changed more than 8 pips, then we have to wait until the 35% of the spike (that must be done before 40 seconds) and to enter our order? (of course in the direction of the retracement trend am i right?)
the US Adjusted Retail Sales Less Autos move the market for 20 pips and then the retracement was 100%, but it wasnt trigerred, why?

You can use Forex News Gun independently of Diamonds Trading Signals as these are two separate trade plans. In this case FNG wasn't triggered because trigger level was 0.9 and figure came out as 0.7 - better than expected though (0.4). However, initial spike was big enough (20pips) to start seeking for entry with DTS and price gave us the sufficient retracement in 20 seconds. So we entered "in the direction of the initial spike" that is long. In this case stop loss was triggered in 5 minutes as trend didn't continue soon enough (we entered long at -35% at 103.70 and it was stopped out at 103.62 five minutes later), but this trade plan is about trend continuation - entering the market after first significant retracement.

 

[marc123]

can i use a one minute chart and when i see the initial move in one direction enter the trade on the retracement thanks for any help you can give me

 

[Peter O]

can i use a one minute chart and when i see the initial move in one direction enter the trade on the retracement thanks for any help you can give me

It's possible to use such trade plan but you need something concrete calculation to find the end of the initial spike. Without this it remains guessing. For example you could have a spreadsheet with deviations, currency pairs and expected initial spike sizes, and by this you can trade exactly the plan. Then you can test profitability and you can adjust it accordingly.

 

[Exoskeletor]

You can use Forex News Gun independently of Diamonds Trading Signals as these are two separate trade plans. In this case FNG wasn't triggered because trigger level was 0.9 and figure came out as 0.7 - better than expected though (0.4). However, initial spike was big enough (20pips) to start seeking for entry with DTS and price gave us the sufficient retracement in 20 seconds. So we entered "in the direction of the initial spike" that is long. In this case stop loss was triggered in 5 minutes as trend didn't continue soon enough (we entered long at -35% at 103.70 and it was stopped out at 103.62 five minutes later), but this trade plan is about trend continuation - entering the market after first significant retracement.

I cant understand why we enter long in a retracement if the initial spike was bullish. we hope that the retracement will stop and the spike will continue going upwards?

 

[Peter O]

Exactly, we go for trend continuation. This is why we need significant initial spike - after that we suppose that the particular event is going to move the market further.