Forum on trading, automated trading systems and testing trading strategies
newdigital, 2014.02.26 09:00
2013-02-26 07:00 GMT (or 08:00 MQ MT5 time) | [EUR - GfK German Consumer Survey]
if actual > forecast = good for currency (for EUR in our case)
German GfK Consumer Sentiment To Improve In March
Germany's consumer confidence is set to improve in March, a closely watched survey from GfK showed Wednesday.
consumer confidence index rose to 8.5 points from 8.3 points in
February. The index was forecast to remain unchanged at February's
originally estimated value of 8.2.
GBPUSD M5 : 34 pips price ranging by GBP - GDP news event :
newdigital, 2014.02.27 06:55
2013-02-27 00:30 GMT (or 01:30 MQ MT5 time) | [AUD - Private Capital Expenditure]
if actual > forecast = good for currency (for AUD in our case)
Australia Private Capital Expenditure Falls 5.2% In Q4
Private capital expenditure in Australia was down a seasonally
adjusted 5.2 percent in the fourth quarter of 2013 compared to the
previous three months, the Australian Bureau of Statistics said on
Thursday - coming in at A$38.291 billion.
That was well shy of
forecasts for a decline of 1.3 percent following the downwardly revised
2.6 percent contraction in the third quarter (originally 3.6 percent).
MetaTrader Trading Platform Screenshots
AUDUSD, M5, 2014.02.27
MetaQuotes Software Corp., MetaTrader 5, Demo
AUDUSD M5 : 43 pips price movement by AUD - Private Capital Expenditure news event
newdigital, 2014.02.28 06:43
2013-02-28 00:00 GMT (or 01:00 MQ MT5 time) | [NZD - Business Confidence]
if actual > forecast = good for currency (for NZD in our case)
NZ business confidence at highest level in almost 20 years
New Zealand business
confidence rose to its highest level in almost 20 years in
February, indicating strong economic growth this year.
net 70.8 percent of firms are optimistic about general
business conditions this month, up from 64.1 percent in
December and the highest level since March 1994, according
to the ANZ Business Outlook survey. The New Zealand dollar
jumped as high as 83.95 US cents from 83.61 cents
immediately before the 1pm release, and was recently trading
at 83.93 cents.
Firms seeing a pickup in their own
business activity rose to 58.5 percent from 53.5 percent in
December, the highest reading since June 1994. Expected
profitability of 44.6 percent is up from 39.7 percent in
December and at the highest level since April 1994.
32.4 percent expect to hire more staff, up from 24.7 percent
in December and the highest level December 1992, while
investment intentions at 35.2 percent is up from a previous
reading of 21.8 percent and the strongest since March
NZDUSD, M5, 2014.02.28
NZDUSD M5 : 49 pips price movement by NZD - Business Confidence news event
newdigital, 2014.02.28 09:52
In light of the protracted recovery, Governor Stephen Poloz may take
additional measures to encourage a ‘soft landing,’ and a material shift
in the policy outlook may produce fresh highs in the USDCAD as the
Federal Reserve remains poised to discuss another $10B taper in March.
How To Trade This Event Risk
Bearish CAD Trade: GDP Report Shows Marked Slowdown in Growth
Potential Price Targets For The Release
USDCAD M5 : 34 pips price movement by CAD - GDP news event :
USDCAD M5 : 46 pips price movement by CAD - GDP news event :
newdigital, 2014.03.04 06:50
2013-03-04 00:30 GMT (or 01:30 MQ MT5 time) | [AUD - Current Account]
Australia Current Account Deficit A$10.1 Billion
Australia saw a seasonally adjusted current account deficit of
A$10.139 billion in the fourth quarter of 2013, the Australian Bureau of
Statistics said on Tuesday.
That missed forecasts for a shortfall
of A$10.0 billion following the upwardly revised A$12.5 billion deficit
in the third quarter (originally a deficit of A$12.7 billion).
The primary income deficit climbed A$536 million or 6 percent to A$9.898 billion.
AUDUSD, M5, 2014.03.04
AUDUSD M5 : 28 pips price movement by AUD - Current Account news event
newdigital, 2014.03.04 08:44
2013-03-04 03:30 GMT (or 04:30 MQ MT5 time) | [AUD - Cash Rate]
RBA Holds Cash Rate At Record Low; Signals Period Of Stability In Policy
Australia's central bank on Tuesday maintained its main cash rate at
a record low for a seventh successive month, and indicated a period of
stability in monetary policy, as inflation pressures remained high.
Reserve Bank of Australia, or RBA, kept the policy interest rate
unchanged at 2.5 percent following its rate-setting meeting. The
decision was in line with economists' expectations.
post-decision statement, Governor Glenn Stevens said that the monetary
policy is appropriately configured to foster sustainable growth in
demand and inflation outcomes consistent with the target.
AUDUSD M5 : 60 pips price range movement by AUD - Cash Rate news event :
newdigital, 2014.03.04 10:46
2013-03-04 08:00 GMT (or 09:00 MQ MT5 time) | [EUR - Spanish Unemployment Change]
if actual < forecast = good for currency (for EUR in our case)
Spanish Unemployment Falls In February
Spain's unemployment decreased in February from the prior month, data from labor ministry showed Tuesday. Unemployment declined by 1,949 in February, which was the first decline for February since 2007.
seasonally adjusted terms, unemployment decreased by 55,353, which was
the largest decline in the historical series, the ministry said. Youth unemployment fell by 51,159 or 10.7 percent over the last twelve months in February.
EURUSD M5 : 21 pips price movement by EUR - Spanish Unemployment Change news event :
newdigital, 2014.03.04 19:07
Unfortunately trends don’t always exist; and when that often entails
congested, range-bound price movements as bulls and bears both fight to
take over control of the market in search of the next trend. These
range-bound environs can be more dangerous, and given the limited upside
that might be available, many traders will often eschew trading the
range; instead waiting for the inevitable breakout that may end the
range and lead into a new trend.
The Benefit of Multiple Time Frames
The value of being able to get a ‘bigger picture’ view on a market
cannot be understated. To think of the value of multiple time frame
analysis, think of trading in a currency pair like buying a home.
If you’re going to buy a home, you’re likely going to want more of an
overview than simply driving by and getting a quick glance. This is like
trading a currency pair when only seeing one time frame.
When buying a home, you’ll likely want to get out of the car and walk
around to ensure that the back yard isn’t in complete disarray. You want
to check the foundation to make sure that you’re not going to have
exorbitant repair expenses in your future. You want to get as much
information as is feasibly possible to make the most intelligent
purchasing decision that you can.
Trading in a market isn’t all that different, the more information you have the more of an informed decision that you can make.
Multiple Time Frame Intervals for Trend Diagnoses/Entry
And if the four-hour time frame is being used to enter positions, the
daily chart can be used to gauge the trend (or lack thereof); so that
the trader can ensure they are focusing the optimal approach on the
prevailing market condition.
Or perhaps a longer-term trader wants to use the daily chart to enter
trades. Well, then the weekly chart can be used as the longer time frame
to guide the trader’s decision-making processes.
The benefit of using a longer time frame in the decision as to which
strategy to utilize is that the trader can take more information into
account, getting an idea of the ‘bigger picture’ before executing on
Gauging Trend Strength (or lack thereof)
Once a trader has determined the time frame with which they want to
look to grade the prevailing trend, focus can then be diverted to
investigating the strength of that trend.
Price Action is a popular mechanism for doing so. Traders can simply
look as to whether a market is in the process of making ‘higher-highs’
and ‘higher-lows.’ If this is taking place, then the trader is
witnessing an up-trend, and can look to move down to the shorter time
frame in an effort to buy as efficiently as possible.
Another popular way of grading trend strength on the longer-term chart
incorporates the ADX indicator. ADX, or the Average Directional Index is
an indicator created by J. Welles Wilder that was designed specifically
to grade trend strength. The downside of this is that it doesn’t show
which direction the trend might be moving, only whether the trend is
‘strong’ or ‘weak.’
Traders can use the ADX indicator on the longer-term chart to determine
whether or not a trend is being seen in the market. If values are
reading over 30 on ADX, then traders will often look to execute
Now that the Trend is determined, what’s next?
The shorter time frame is where the trader will often look to enter into
the market based on the analysis on the longer time frame.
If a trend was found on the longer time frame, the trader’s job is to
find a way to enter in the direction of that trend. On the lower
time-frame, the trader can look to buy up-trends cheaply, or to sell
down-trends expensively. This can be done with price action; or traders
can look to incorporate indicators to offer a ‘trigger’ in the direction
of the longer-term trend on the shorter time frame. Some common
indicators for triggering positions on the shorter time frame are MACD,
Stochastics, and the Commodity Channel Index (CCI).
If a Range-bound market condition was seen on the longer time frame,
the trader has another decision to make before deciding how to enter:
Does the trader want to trade continuation of the range, or the eventual
The logic of the range-bound entry and the breakout is directly
opposite: Trading ranges entails selling highs, and buying lows (in
anticipation of the range continuing), while trading breakouts involves
buying new highs and selling new lows (with the expectation of the
breakout bringing new highs or new lows into the market).
If trading for the break, traders can look to place entry orders
slightly outside of support or resistance levels so that once a new high
or low is printed, the trade is entered and the trader can look for new
highs or lows.
If traders are looking to trade the range, an oscillator can be used
similarly in the way that a trader would buy or sell in a trend (with
the notable exception that up-side is limited). In both trends and
ranges, traders want to look to ‘buy low’ and ‘sell high.’ The same
types of tools can be used to determine when to buy and when to sell;
MACD, Stochastics, and CCI are all popular mechanisms to trade in
range-bound market conditions just as they are with trends.
Indicators: MACD - Any higher timeframe
newdigital, 2014.03.05 07:36
MACD as an Entry Trigger (based on dailyfx article)
Having a strong trigger in a trading strategy can be a very important
component. After all, to have a bias and to blindly buy or sell to trade
on that bias can be categorized as haphazard; and in some cases that
may be a bit of an understatement.
Having a trigger helps with timing the entry into a position. It won’t
be perfect, but this is trading an perfection is impossible in the first
place. Rather, a strong trigger is a way that traders can look to
increase the probabilities of success by allowing the market to begin
showing the trader what is wanted before any position is ever entered.
Let’s look at a few examples below to illustrate in more detail.
Using MACD with a Fundamental Approach
Many fundamental traders eschew technical analysis for one reason or the
other. This isn’t to say that technical analysis is better or vice
versa; these are just two differing ways of analyzing a market. But, the
best way is often to try to include them both, and something like a
MACD entry trigger can be a best friend to a fundamental trader.
Let’s say that a trader has a bias on the market. This can be any bias:
Perhaps the trader expects the S&P to begin tumbling lower… or maybe
the trader is expecting the Aussie to shoot to the moon on the back of a
cheap dollar and stronger than expected Chinese data. Whatever the case
and whatever the bias, the trader can wait to enter the position until
the market appears more primed for their idea to come to fruition.
The trader can simply watch the 4-hour chart to get a MACD entry signal in the direction that they are looking to trade
The trader can even look to manage the position via MACD after the first trade is placed.
If a contrarian MACD signal shows up (MACD crosses down and under the
signal line while in a long position or vice versa); the trader can look
to close the long position until another bullish trigger takes place.
Using this type of approach can allow the fundamentals trader to get
potentially higher probabilities of success since they’re waiting for
the technical environment to agree with their fundamental bias before
triggering into the position.
Using MACD as a Scalper/Day-Trader
Just as the Fundamental-based trader can use MACD to trigger trades in
the direction of their bias, scalpers and day-traders can look to do the
same on very short-term charts.
Shorter-term traders can use the hourly or four-hour chart to look for
trends or biases in the marketplace that may be operable for their
purposes; and then can look to enter position with MACD crossovers in
price movements in that direction.
Scalpers can use longer-term trend analysis and shorter term MACD entries in direction of trend
The MACD trigger can be investigated on the five or fifteen minute
charts to look for quick entries in the direction of slightly
MACD Triggers as Part of a Broader-based Technical Strategy
Traders can also look to implement a MACD trigger in conjunction of additional technical methods of analysis.
In the 4-hour trader, we looked specifically at that type of strategy.
Traders can use a longer time frame chart, such as the daily chart, to
investigate trends and determine any relevant biases that may exist in
Once the trader has determined the direction that they want to trade in a
market given the trend found on the longer-term charts, they can then
go down to the shorter time frame chart to wait for a MACD signal in the
direction of that trend.
Multiple time frame analysis can bring enormous benefit to the trader.
The longer time frame provides the ‘bigger picture’ view of any biases
or trends that may exist in the marketplace; and the MACD trigger on the
shorter time frame can allow the trader to focus on high-probability
setups in which the longer-term bias may be coming back into the market.
newdigital, 2014.03.05 09:38
2013-03-05 00:30 GMT (or 01:30 MQ MT5 time) | [AUD - GDP]
Australia Q4 GDP Climbs 2.8% On Year
Australia's gross domestic product added a seasonally adjusted 2.8
percent on year in the fourth quarter of 2013, the Australian Bureau of
Statistics said on Wednesday.
That beat forecasts for an increase of 2.5 percent following the 2.3 percent gain in the third quarter.
a quarterly basis, GDP added 0.8 percent - also topping expectations
for an increase of 0.7 percent following the 0.6 percent gain in the
previous three months.
AUDUSD, M5, 2014.03.05
AUDUSD M5 : 40 pips price movement by AUD - GDP news event