GAWK TALK STRATEGY
Time FrameGawk the talk works with the 15-minute (M15) or 30-minute (M30) candle.
This means that each candle on the chart represents 15 minutes or 30 minutes of price movement.
IndicatorsNo indicators are used for this strategy.
Currency PairsThe gawk talk strategy is suitable for all currency pairs listed on the
broker’s platform, especially the seven major currency pairs of:
EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD
Strategy ConceptWe use either the M15 or M30 charts to determine our entries because the news is usually released in 15-minute intervals. Examples include 8 A.M., 9:15 A.M., 10:30 P.M., and 11:45 P.M.
As discussed in the Rule of 20, trades are taken by comparing the forecasted figures with the actual figures. For this strategy, we go long on the affected currency when actual figures are greater than forecasted figures by a minimum factor of 20%. Since we trade in currency pairs, we focus on pairs which feature the U.S. dollar in either the base currency or counter currency.
As an example, if the news is a positive interest rate announcement by the Reserve Bank of Australia, we will take a long trade on the AUD/USD.
If the news is a positive retail sales announcement by Switzerland, we take
a short trade on the USD/CHF.
What about news announcements by the United States?
For news that affects the United States directly, it is best for us to trade the two most liquid pairs: EUR/USD and USD/JPY.
In summary, if the affected currency is the base currency, we go long on the currency pair. If the affected currency is the counter currency, we go short.
Long Trade SetupWe use the Australian employment data on the M15 time frame for illustrating a long trade. Here are the steps to execute the gawk talk strategy for long:
1. Identify the currency to trade the news (AUD employment change).
2. Enter long on AUD/USD once the actual figure released is higher than
the forecasted figure by 20% or more. (See Figure 7.15.)
3. Set a stop loss of 20 pips from the entry price.
4. Set a profit target of 40 pips from the entry price. (See Figure 7.16.)
From the long example in Figure 7.17:
Entryprice=1.0303
Stoploss= 1.0283
Profit target = 1.0343
The risk for this trade is 20 pips, and the reward is 40 pips. The risk to
reward ratio is 1:2, which yields a tidy 6% return if we take a 3% risk.
Time FrameGawk the talk works with the 15-minute (M15) or 30-minute (M30) candle.
This means that each candle on the chart represents 15 minutes or 30 minutes of price movement.
IndicatorsNo indicators are used for this strategy.
Currency PairsThe gawk talk strategy is suitable for all currency pairs listed on the
broker’s platform, especially the seven major currency pairs of:
EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD
Strategy ConceptWe use either the M15 or M30 charts to determine our entries because the news is usually released in 15-minute intervals. Examples include 8 A.M., 9:15 A.M., 10:30 P.M., and 11:45 P.M.
As discussed in the Rule of 20, trades are taken by comparing the forecasted figures with the actual figures. For this strategy, we go long on the affected currency when actual figures are greater than forecasted figures by a minimum factor of 20%. Since we trade in currency pairs, we focus on pairs which feature the U.S. dollar in either the base currency or counter currency.
As an example, if the news is a positive interest rate announcement by the Reserve Bank of Australia, we will take a long trade on the AUD/USD.
If the news is a positive retail sales announcement by Switzerland, we take
a short trade on the USD/CHF.
What about news announcements by the United States?
For news that affects the United States directly, it is best for us to trade the two most liquid pairs: EUR/USD and USD/JPY.
In summary, if the affected currency is the base currency, we go long on the currency pair. If the affected currency is the counter currency, we go short.
Long Trade SetupWe use the Australian employment data on the M15 time frame for illustrating a long trade. Here are the steps to execute the gawk talk strategy for long:
1. Identify the currency to trade the news (AUD employment change).
2. Enter long on AUD/USD once the actual figure released is higher than
the forecasted figure by 20% or more. (See Figure 7.15.)
3. Set a stop loss of 20 pips from the entry price.
4. Set a profit target of 40 pips from the entry price. (See Figure 7.16.)
From the long example in Figure 7.17:
Entryprice=1.0303
Stoploss= 1.0283
Profit target = 1.0343
The risk for this trade is 20 pips, and the reward is 40 pips. The risk to
reward ratio is 1:2, which yields a tidy 6% return if we take a 3% risk.
- Forex trading stategy: Gawk talk strategy
- Forex trading stategy: Gawk talk strategy
- Forex trading stategy: Gawk talk strategy
- Forex trading stategy: Gawk talk strategy
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Short Trade SetupWe use the Swiss CPI to illustrate a short trade. Here are the steps to
execute the gawk talk strategy for short:
1. Identify the currency to trade for the news (CHF CPI month on month [m/m]).
2. Enter short on USD/CHF once the actual figure released is higher than the forecasted figure by 20% or more. (See Figure 7.18.)
3. Set a stop loss of 20 pips from the entry price.
4. Set a profit target of 40 pips from the entry price. (See Figure 7.19.)
From the short example in Figure 7.20:
Entryprice=0.9167
Stoploss= 0.9147
Profit target = 0.9107
The risk for this trade is 20 pips, and the reward is 40 pips. The risk to reward ratio is 1:2, which yields a tidy 6% return if we take a 3% risk.
Strategy RoundupThis strategy takes advantage of the market reaction when the actual figures for the affected currency are higher than the forecasted figures by a minimum factor of 20%.
CHF CPI m/m on 8 Mar 2012
Forecast: 0.2%, Actual: 0.3%
Short Trade SetupWe use the Swiss CPI to illustrate a short trade. Here are the steps to
execute the gawk talk strategy for short:
1. Identify the currency to trade for the news (CHF CPI month on month [m/m]).
2. Enter short on USD/CHF once the actual figure released is higher than the forecasted figure by 20% or more. (See Figure 7.18.)
3. Set a stop loss of 20 pips from the entry price.
4. Set a profit target of 40 pips from the entry price. (See Figure 7.19.)
From the short example in Figure 7.20:
Entryprice=0.9167
Stoploss= 0.9147
Profit target = 0.9107
The risk for this trade is 20 pips, and the reward is 40 pips. The risk to reward ratio is 1:2, which yields a tidy 6% return if we take a 3% risk.
Strategy RoundupThis strategy takes advantage of the market reaction when the actual figures for the affected currency are higher than the forecasted figures by a minimum factor of 20%.
CHF CPI m/m on 8 Mar 2012
Forecast: 0.2%, Actual: 0.3%
- Forex trading stategy: Gawk talk strategy
- Forex trading stategy: Gawk talk strategy
1. For any news site you utilize, please remember to sync the timing of the
news announcement to match the time zone of the country you are in.
2. Be mindful of whether the affected currency is in the base or counter currency of the forex quote. As an example, strong figures for USD would
constitute a longtrade ontheUSD/JPY but ashort trade on theEUR/USD.
news announcement to match the time zone of the country you are in.
2. Be mindful of whether the affected currency is in the base or counter currency of the forex quote. As an example, strong figures for USD would
constitute a longtrade ontheUSD/JPY but ashort trade on theEUR/USD.
Nice post. I read all strategies and all of them is good. I love to try these Forex trading strategies and make some money. Thanks for sharing
ReplyDeleteI found your this post while searching for information about blog-related research ... It's a good post .. keep posting and updating information. ForexFury.com
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