Taking advantage on news is attractive to many traders due to its swiftness and possibility to benefit.
This week, such traders might be interested in updated statistics on the following indicators of the Euro area:
* Core CPI (MoM);
* CPI (MoM);
* GDP (YoY);
* GDP (QoQ).
They are specifically interesting due to their efficiency and profitability being proven by testing trading on rollbacks on history.
And that means it’s possible to choose any instrument against the euro and start trading.
We will focus on the EURGBP currency pair, for this week hasn’t been rich in such events in Great Britain.
Fundamental aspects of the countries are that the economy of the Euro area is slightly ahead of the British economy, which is beneficial for us and the euro. For if GDP and CPI decline, the economy of the euro area will be less attractive, and EURGBP is likely to fall. And if said indicators go up, the economy will be more appealing, and some growth of the pair is expected.
How to act?
For each of four indicators, there is the same strategy (timeframe M15):
Seconds before the update of data in the EURGBP graph put two pending orders Buy Limit and Sell Limit at the distance of 0.1 - 0.15% from the current price (which is about 80 - 120 points of profit) with the target order Take Profit set in the area of the price at the moment of update.
** the indicator grows, keep Buy Limit only, and remove Sell Limit. Get secured by putting Stop Loss order below the minimum of the previous day.
** the indicator declines, keep the Sell Limit order, and remove Buy Limit. Get secured by putting Stop Loss order above the high of the previous day.
If the pending order to open a position doesn’t work for 8 hours, remove it.
If the Take Profit order doesn’t work for 8 hours after the opening of the transaction, exit the market on your own.
Remember about the spread and the rules of capital management.
Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.