Mark Carney (July 2013 – June 2021) is the governor of the Bank of England, when he speaks the market responds.
Considering the fact he’s the head of the BOE’s Monetary Policy Committee (MPC) which reins short term interest rates, Mark Carney has further influence over the Pound’s value than any other person.
Investors are always throttling his public remarks for clues pertaining to future monetary policy. Carney’s comments can be good or bad for the Sterling.
Chart Setup
MetaTrader 4 Indicators: Freescalpingindicator.ex4 (width modified), FX5_MACD_Divergence_V1.1.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes
Recommended Trading Sessions: 20 minutes after news release
Currency Pairs: GBP/USD
Download
Download the BOE Forex News Trading Strategy
Trade Example (Click the picture for full size)
Fig. 1.0
Strategy
Long Entry Rules
Place a buy entry 20-minutes after Bank of England Governor Carney Speaks based on the following chart conditions:
- If the Free scalping indicator custom indicator forms lime colored histogram above the 0.00 level, it is a buy trigger.
- Ignore the trend lines and arrows being displayed by the FX5_MACD_Divergence_V1.1 custom indicator, rather look out for the magenta line crossing the blue line upward and if it climbed past the 0.0000 level – a buy alert is in order.
Stop Loss for Long Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Long Entry
Exit or take profit on position(s) if the following chart/indicator pattern holds sway:
- If the lime colored histograms of the Free scalping indicator custom indicator collapses into the 0.00, it is a reversal signal. Alternatively if a red histogram developed below the 0.00 level, price is said to be on its way down, thereby prompting an exit or take profit.
- If the FX5_MACD_Divergence_V1.1 trend lines forms lower lows or if the lines of the FX5_MACD_Divergence_V1.1 custom indicator drops below the 0.00 level, it indicates an exit or take profit trigger.
Sell Entry Rules
Enter a sell position 20 minutes after the data release if the following chart or indicator patterns are present:
- If the red colored histogram of the Free scalping indicator custom indicator forms below the 0.00 level, it is a trigger for a sell entry.
- If the FX5_MACD_Divergence_V1.1 custom indicator crosses below the 0.00000 level, it is a signal indicating a bears market.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on position(s) if the following chart or indicator pattern are in display:
- If the red colored histogram of the Free scalping indicator custom indicator recoils upwards into the 0.00 level or a lime colored histogram forms above the 0.00 level, it is an indication that price is being pushed higher, hence an exit or take profit is advised.
- If the FX5_MACD_Divergence_V1.1 trend lines forms higher lows or if the lines of the FX5_MACD_Divergence_V1.1 custom indicator spikes above the 0.00 level, it indicates an exit or take profit trigger.
Free Download
Download the BOE Forex News Trading Strategy
About The Trading Indicators
The Freescalpingindicator.ex4 custom indicator is primarily a scalping tool that is designed to react to price action via its red or lime histograms, aligned below or above the 0.00 level as a trigger for a buy or sell respectively.
The FX5_MACD_Divergence_V1.1.ex4 custom indicator is a technical study that detects divergences between the currency price and the MACD indicator. The indicator offers buy alert for bullish divergences and sell alerts for bearish divergences.