Archive for the ‘NZD News Data’ Category

Well, here we go with another NZD trade. This has been a great trade in the past but has also misbehaved like the NZD is prone to do. Here is my advice. Set up for this and be prepared to trade it but have your finger on the Expert Advisors button on the top of your MT4 station. If you see ANYTHING that doesn’t look right to you a few seconds before the trade, turn off EAs by clicking the Expert Advisors button. If you were wrong and it turned out to be a good mover, so what. As is so often said, it is WAY better to not be in a good trade than to be in a bad trade. Truer words were never spoken.

Also look for movement in the couple hours before the trade. This is very subjective, but if you see more than 50 to 75 pips of movement, might want to sit it out. Also any abrupt spikes within 10 seconds or so of the release time is a great sign to not trade.

6:45 PM EDT
NZD CPI q/q – Change in the price of goods and services purchased by consumers.
NZD/USD

In July the STP interface was down. The data, which came out at .2, came out early by 4 or 5 seconds. It spiked, retraced slightly, and continued to 38 pips in 6 minutes. If you were trading this, you should have gotten the message saying DATA OUT, NOT ENTERING ORDERS. You shouldn’t have been in the trade, nor would have you wanted to be since the spike will have occurred before your orders got entered. I think most didn’t even try it due to the interface problem. Anyway, in October it came out at -.3 and -.3 with a 30 pip spike. No goofiness here (a quote from my notes). Data came out 1 second after the posted time (which is normal) and gave us a decent spike up. It subsequently retraced all the way back, then continued up again for 40 pips. In January it came out at -.7 and -.8 with a 22 pip spike. It retraced slightly then pushed to 40 pips in the first 30 seconds before retracing 2/3 of the way. Then fell to 50 pips over the next 30 minutes.

ORACLE TRADER – set medium to .3 and safe to .4. Heed the advice above.

STRADDLE V1.3 – set maxSpread to 7. I’d get out after the spike since you don’t have visibility into the actual data in a timely manner.

STRADDLE PRO – set Buy/Sell Trigger to .2 and check the box. You can bump the buy/sellPips up a pip or 2, or leave them at the default. If it comes out at .5 or higher, and you are feeling lucky, you can close 1/2, be sure the hard stop is set to 0, and let ‘er ride for awhile.