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Wednesday September 21, 2011 NY TIME 6:45pm EDT – NZ GDP q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Sep 20, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Hello FPA members,

    Today we have the NZ GDP, I have prepared the following trade plan for you.

    NZ GDP q/q
    Forecast 0.5%
    Previous 0.8%
    Pair to trade: NZD/USD

    Numbers we need: BUY NZD/USD 0.8%
    SELL NZD/USD 0.2%

    Economical Impact: High
    Typical Result: Good for currency
    Occurrence: Quarterly, 85 days after the quarter ends
    Spike Probability: Good but, be mindful that trade has tendency to reverse after spike

    About our Triggers:
    NZ GDP q/q is forecasted to arrive at 0.5%.
    If we get 0.8% or better I will look to enter a LONG position on NZD/USD and if we get 0.2% or lower I will go SHORT on NZD/CAD.
    Should this report be triggered, we can expect to see about 25pips on the initial spike.

    What is it? And why does the market care?
    Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole.

    A higher than expected reading should be taken as positive/bullish for the NZD
    A lower than expected reading should be taken as negative/bearish for the NZD

    Method I use to trade this:
    Stavro D’Amore Trading Method
    I will look for a 50% retracement in the original spike before entering a trade if trade falls below the 50% spike I will look to go the opposite direction as this trade is likely to reverse. I will be looking at a 15 minute chart. I will close half my position as soon as I hit the original high point of the first initial spike and place a SL at the original spike price.

    NOTE: I will not take this retracement on this trade unless our triggers are hit.

    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 to analyse this.

    I do NOT recommend spike trading as an option on this trade NZ releases are known to have latency, Should you decide to trade spike please do in caution.

    Historical Chart and Data for NZ GDP q/q

    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Sep 20, 2011
    Lasted edited by : Sep 8, 2016
  2. frank adagba

    frank adagba Recruit

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    star,devo

    please can you help me i want to learn how to calculate those figure like you said 0.2 or 5.7 or if a news is about to release those figure we usually see i want to know how calculate them effectively also how to set the resistant and pullback though i understand resistant and pullback .

    please thank you

    i await your reply


    Frank
     
  3. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Sure Frank Just Private message me, click on my profile you will find details there.

    Regards

    Stavro D'Amore
     

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