If you trade forex, you already know that the GDP report is one of the most appreciated pieces of information in the marketplace. It is comprehensive, provides a picture of national economic activity on a meaningful time frame, and has important implications for such variables as the unemployment rate, central bank rates, and inflation. We do not pretend that the small space of this page will allow us the chance to make a detailed exposition on the subject,  but we do aim to present a few salient points of the report as they relate to trading decisions, and market trends.

The GDP report provides a snapshot of all economic activity that take place inside the borders of a nation. Any economic activity that in some way leads to the production of goods or services is included in the report. If a foreign firm employs workers in the U.S., for example, the products created by U.S. workers will be accounted for in the report. On the other hand, if an American firm operates one hundred factories outside in Mexico, and generates billions of dollars in income from its activities there, none of it will be made a part of the GDP report, since no production takes place inside the national borders.

The GDP report is not generally regarded as a forward-looking indicator, and indeed, few of the information contained in it has a great degree of relevance for the future dynamism of the economy. On the other hand, no one has a crystal ball that can show the future, so central bank authorities include the information presented by this report in their evaluation of inflationary pressures. In particular the GDP deflator is an important piece of data that tells us how much price pressure is generated by domestic production. It differs from the CPI in that it does not account for import prices. By looking at this indicator, economists can isolate the domestic portion of the inflation spectrum, which can then help them decide the impact of currency fluctuations on price rises at home.

The GDP report accounts for all production in a country, but it only calculates the values of final goods. In other words, the report does not calculate the number and dollar value of tires, car motors, but only measures the dollar value of automobiles created by domestic industries. As a result, it provides a compact, yet detailed overview of national economic activity.

The GDP report is one of many economic indicators, and it must be taken in the context of other indicators that contribute to the big picture as it exists in reality and in the minds of traders. By familiarizing yourself with the GDP number and its details you may gain a significant edge over traders who are ignorant of its meaning and significance. This particular indicator is relatively straightforward, and if you are a trader, there is no justification for not studying and comprehending it to the maximum extent possible.

GBP/USD x USD/JPY = GBP/JPY

so should also look at GBP/USD and USD/JPY. If You want to buy GBP/JPY, you should see strong GBP and a week JPY so GBP/USD should go up and USD/JPY shluod go up then GBP/JPY has to go up a lot.

Let’s talk about system. I trade on 15 minutes chart but i’m using also 30minutes and hourly ploted on my 15 min chart. Also i’m using 4h chart to look for support resistance such as fibs and weelky, montly pivots, highs/lows.

Download indycators from here. Unzip them and put to C:/Program Files/Meta Trader/expert/indycators/. Also You can download from here my template, put it to C:/Program Files/Meta Trader/templates/. Reboot Your trading platform. I’m using FXDD Mt4, platform timing is very important.

Rules to open short position. Reverse it to long trades.

A.Oportunity

1.Start from 4h chart and look for posible support (weekly and montly pivot, big fibs), where the price can reverse and hit Your SL. Avoiding false breakout.

2.Also remended is trading with the main trend on daily and 4h chart.

3.Repeat this process to 15m chart, use daily pivots.

B.Setup

1.QQE(5) crossed to dwonside as You can see below.

2.Price below 5 days SMA and 100 hourly SMA. I’m using an indycator to plot in on m15 chart.

3.SMA 5 and SMA 13 crosed to dwonside 30m chart.

4.If You use the same SL example 30 pips think about TP shoud be minimum of 30 pips. The bigger it is the better(TP/SL)

C.Trade

1.Bar CLOSED below the box

Aditional rules:

1. Always use stop loss

2. If You can’t stay on Your winning trades split it. So You close first half at example +50 pips and drag the second half to example cross the blue line with the price.

P.S. There a lot of stuff that You should know and i don’t wanna post it here for now. If You have any questions post in comment.

So You see nice spike up and then pound is pulling back to 50% or 38.2%. Putting limit buy order on 50% or 38.2% is not that smart becouse it’s preaty big move and You have to use large SL that i’m not interested in. So when i see move around 100 pips than i weited for pullback down and get in on 38.2% of 100 pips move. chart below.

My order had been activated at first circle and at second i manualy got out. So i took 40 pips profit

+50 pips with 30 pips SL

Resaons:

-On daily chart there’s nice downtrend. Trend is slowing down You can see it on MACD chart below, but still down

on 4h chart below we can see nice spike up, so i’m drawing fibs (from total bottom of this swing to highs) and trying to get in on retracement or extansion, threre was no pullback to minimum 50%  retracemnet ( on 15m chart). As You can see there an exalent level two fibs targets are almost at the same price. GREAT!! Pleace to short

So i took exelent short at top and get 50 pips There ware strong uptrend whole day and no pullback for me to get in.

I’m trading on 15m chart but using also 4h and daily chart to see what is going on. Will explain soon my technics.

NOTE:

Safer is to put trade on pullback then on profits also safer is to have multi reason to put trade.

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