Trade UK GDP News Forex Trading Strategy
The UK Gross Domestic Product (GDP) gauges the yearly variation in the inflation-adjusted rate of all goods and services manufactured by the economy. It is biggest gauge of economic activity and the key pointer of the economy’s health.
From a fundamental point of view, a higher than expected number is seen as bullish or positive for the Sterling, while a worse than expected number is seen as bearish or negative for the Sterling.
Howbeit, this trading strategy is able to take advantage of the high volatility that is experienced during such market news releases (high impact news event like the UK GDP) and the potential for huge profits.
MetaTrader4 Indicators: CCIchannel.ex4 (default setting), Volcanowma.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes
Recommended Trading Sessions: After news release
Currency Pairs: GBP/USD (recommended), GBP/JPY
Trade Example (Click the image for full size)
Long Entry Rules
Initiate a buy when the following chart/indicator patterns are in display 20-minutes after the release:
- If the gold line of the CCI channel custom indicator pushes above the 0.00000 level within its indicator window, it signals a bullish sentiment in the market, thereby giving way for a possible buy entry. Also note the dotted Lime colored line of the CCI channel custom indicator is horizontally aligned closed to the -219.0868 level (a supporting signal for a good buy).
The third pointer to look out for in this indicator is the upward pointing dodger blue colored arrow of the CCI channel custom indicator. If it is aligned below price bars, it supports the buy signal.
- The Volcanowma custom indicator forms Lime colored upward pointing arrows aligned below price bars, an indication that price is getting an upward push – buy signal.
Stop Loss for Long Entry: Place stop loss below the most recent support price.
Exit Strategy/Take Profit for Long Entry
Exit or take profit on long position(s) if the following chart patterns are in display:
- If the gold line of the CCI channel custom indicator bounces off around the 219.0868 level, begins to drop and the red dotted horizontal line sprouts from the peak of the gold line, it indicates an exhaustion in the exiting bullish trend.
- If a red downward pointing arrow of the Volcanowma custom indicator forms above price bars, it denotes reversal from the current trend.
Sell Entry Rules
Enter a sell if the following chart or indicator patterns are formed 20-minutes after UK GDP data release:
- If the gold line of the CCI channel custom indicator pushes below the 0.00000 level and the dotted red line of the CCI channel custom indicator is horizontally aligned around the 219.0868 level, a sell is advised.
- If the red downward pointing arrow of the Volcanowma custom indicator forms above the price bars, it denotes a sell entry.
Stop Loss for Sell Entry: Place stop loss above the most recent resistance price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on position(s) if the following conditions or rules are in place:
- If the gold line of the CCI channel custom indicator bounces off around the -216.6899 level, an exit or take profit is appropriate.
- If the lime colored upward pointing arrow forms below price bars, an exit or take profit is appropriate.
About The Trading Indicators
The CCIchannel.ex4 is a custom forex indicator that oscillates -216.6899 and 219.0868 extreme values. This indicator allows for the buying and selling of forex pairs in an existing trend.
The Volcanowma.ex4 custom indicator delivers buy and sell alert via an audible sound prompt.