Forex Trading Signals Summary - Wednesday, March 23 2016

Peter O

Special Consultant to the FPA

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.



Forex News Gun Trade Plan​

USA New Home Sales ⋯ 10:00am NY time (Wednesday, March 23)


Traded pairExpected figureDeviation trigger
USDJPY510 (k)±70 (k)
BuyUSDJPYif actual figure is or is above580 (k)
SellUSDJPYif actual figure is or is below440 (k)

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

Review historical charts where the same deviation of at least 70 (k) occurred:​

USA New Home Sales history of charts.​

⋯⋯⋯⋯⋯ FNG Configuration ⋯⋯⋯⋯⋯​

Release name in FNG client: USA New One Family Houses Sold

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

WARNING: Be sure to set 'Range From' interval also in this case in first row (lower interval)!
Otherwise event triggers anyway because there is a name conflict in FNG events dictionary.
(It mixes up New Home Sales and New Home Sales Change.)​


Diamonds Trading Signals Trade Plan​

USA New Home Sales ⋯ 10:00am NY time (Wednesday, March 23)


Traded currency pairUSDJPY
Initial spike duration limit30 seconds
Initial spike price action threshold10 pips
Triggering retracement percentage40 %
Retracement duration limit90 seconds
Maximum trade hold time after release20 minutes
Stop loss10 pips
Take profit10 pips
Maximum spread2 pips

  1. If between 10:00:00am and 10:00:30am, so during the first 30 seconds you see USDJPY move up or down by 10 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 90 seconds (till 10:01:30am) – 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 10 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 10:20:00am, so 20 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.

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