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Forex News Trading: Trades for Wednesday, Jan 25, 2012
Forex News Trading: Trades for Wednesday, Jan 25, 2012
4:30 AM Eastern
UK Prelim GDP q/q – Change in the value of all goods and serviced produced by the economy
GBP/USD
In normal times, this is the best news trade there is. We have seen spikes of 70 pips on a deviation of 0 before. But don’t expect that tomorrow, though it will be very interesting to see how it reacts, particularly if we have a big deviation.
In April we saw deviations of 0 and 0 with a spike of … uh … 71 pips.It was up 109 pips in 20 minutes. In July we saw 0 and .1 with a spike of 72 pips. Was up 90 pips in 2 minutes. Then in November it came out at .2 and 0 but only spiked 30 pips and retraced hard. This came out 2 minutes after the UK Manufacturing PMI trade, and came out in opposition to the PMI trade. I don’t think we can read too much into this.
I expect if we get a deviation of .2 or greater, we will see at least a 30 pip spike but I am anticipating a hard retracement. Be sure to protect your trade. Watch for lots of movement before the trade. If you want to set your buy/sellPips up a couple pips, to maybe 7 or 8, that might be a good idea.
ORACLE TRADER – I’d try medium of .2 and safe of .4, trading 1/2 your normal lots on a medium and 3/4 on a safe.
STRADDLE V1.3 – set maxSpread to 8 or 9.
STRADDLE PRO – set Buy/Sell Trigger to .1 and check the box.
3:00 PM Eastern
NZD Official Cash Rate – Interest rate at which banks lend to each other
NZD/USD
Well, the economists are in agreement about this one so it will likely not be a good opportunity.
ORACLE TRADER – set safe to .25 and use full lots.
STRADDLE V1.3 and PRO – I’d avoid it. If you really must, set buy/sellPips to at least 15 or 20.
Forex News Trading: Trades for Tuesday, Jan 24, 2012
Forex News Trading: Trades for Tuesday, Jan 24, 2012
8:30 AM Eastern
CAD Core Retail Sales – Change in the value of sales at the retail level
USD/CAD
I don’t have much in the way of good notes on this for the last 3 months because I didn’t trade it. What I do have looks like the biggest spike we saw was 11 pips in any of the months. The reason I included it here is because we are starting to see a bit of a resurgence in the CAD trades. I think it is worth a try, albeit with very conservative lot sizes.
ORACLE TRADER – this is really tough. I’d try .4 medium and .7 safe, trading 1/3 your normal lots on a medium and 1/2 on a safe. I doubt it will hit these deviations.
STRADDLE V1.3 – set maxSpread to 6 or 7. Get out fast if there is no movement.
STRADDLE PRO – set Buy and Sell Triggers to .2 and check the row 1 box. You might want to lower your spread numbers a bit from the defaults. Also set either trailing stop or take profit, and use the stop line to take your trades out.
7:30 PM Eastern
AUD CPI q/q – Change in the price of goods and services purchased by consumers.
AUD/USD
This has quite a good history. In April it came out at .4 and .2 with a 32 pip spike, small retracement, and continuation to 45 pips in 7 minutes. We were printing money at the time, and the presses were running strong for this trade. In July it came out at .2, .2, and .4 with a 60 pip spike, small retracement, and continuation to north of 100 pips in 6 or 7 minutes. Made another killing here. In October, with the markets well on the way into their freefall, we saw 0 and .3 but still got a 33 pip spike. It retraced 15 or 20 pips fast, then continued back into the 40 pip neighborhood.
Watch out for early moves or late data. Lets not get caught off guard if screwy things happen. If they don’t, we will likely see a decent trade. If it spikes early (before you are in), turn off the OT or disable EAs on your MT4.
ORACLE TRADER – try .2 medium and .3 safe. Trade 1/2 lots on a medium and 3/4 or more on a safe.
STRADDLE V1.3 – try maxSpread of 9. Might want to set buy/sellPips to 7 or 8, or more.
STRADDLE PRO – set Buy/Sell Triggers to .1 and check the box. Set buy/sellPips to at least 7. Might want to set stopLoss to 0.0. I’d still trade this somewhat conservatively.
Forex News Trading: Trades for week of January 22 thru 27, 2012
Forex News Trading: Trades for week of January 22 thru 27, 2012
This is what we have coming up this week. I would continue to trade the UK and US releases very lightly, though the UK Preliminary GDP q/q is traditionally one of the biggest movers there is. Read the detailed review I post on Tuesday for some additional thoughts. I plan to avoid the US releases, like Fridays Advance GDP q/q, until I start to see some consistency of movement in the US stuff.
Tue 1/24 8:30 AM – CAD Core Retail Sales (Straddle maybe)
Tue 1/24 7:30 PM – AUD CPI q/q (Straddle)
Wed 1/25 4:30 AM – UK Prelim GDP q/q (Straddle)
Wed 1/25 3:00 PM – NZD Official Cash Rate
