We’ve only got 4 tradable news releases this week and here are the results:
Daily Signals
1. Tue July 27, 2010 (9:30pm EST) AU CPI q/q – SELL trade triggered – Dropped 88 pips within the hour.
2. Wed July 28, 2010 (5:00pm EST) NZ RBNZ Cash Raten – No Trade
3. Fri July 30, 2010 (8:30am EST) US Advanced GDP q/q - No Trade
4. Fri July 30, 2010 (8:30am EST) CA GDP m/m – No Trade
Based on Daily Signals, we made a potential of 88 pips this week.
Pre-news Recommendations
1. AUD/NZD SELL 1.2300 – Market dropped to 1.2236, a 64 pips potential.
2. USD/CAD SELL 1.0390 – Didn’t quite get to the 1.0390 level, but market went as high as 1.0366 down to 1.0307 pre-news, showing strong accuracy to pre-news fundamentals.
Based on Pre-news recommendations, the total potential pips = 64
Weekly Trend Recommendations
1. This is my weekly recommendation for USD/CAD: “… we should be looking to BUY USD/CAD whenever it dips down, I would not expect to see USD/CAD drop down to 1.0100 level, much less parity with USD… so whenever we see market pushing this the “wrong way”, I’d call a buy, buy, buy… Look at your 4 hour charts and find those support areas, they should provide entry levels on the USD/CAD pair.”
I count about 4 times of bouncing from 1.0300 area giving about 40 (once) to 88 (3 times) pips of profit each time (304 total). Last drop on Friday should be ignored since it is heading into the weekend, but EVEN if you are in this trade right now, I believe it will still bounce back in the coming week.
2. My recommendation for GBP/USD: “So my bias towards Sterling is pretty much buy on dips. I think if you refrain from SELLING Sterling and just wait for GBP/USD or GBP/JPY to drop towards support levels, your chances of making pips on BUYs are going to be much higher…”
If you bought Sterling on my recommendation on Sunday and hold it all the way to Friday, you have a potential of gain of 310 pips.
If you bought on dips at 1.5443, 1.5548, and 1.5550, you are looking at 160, 92, and 170 pips of potential on each of these buys.
If you prefer to trade the GBP/JPY, you have a chance to enter at the beginning on Sunday, which is a support on 4hr, and pick up 280 pips. Or if you waited until Friday, you have a chance to pick up 160 pips by entering at the same support area.
Based on Weekly Trend, the total of potential pips between USD/CAD and GBP/USD is 614+ pips. Add another 280 pips if you also traded the GBP/JPY pair.
Once again, if you happen to have almost lottery winning luck this week, you could have made 752 pips of profit. If you did win the lottery and traded GBPJPY pair as well, then 1032 pips is not out of the realm of possibilities.
If you just have regular luck but followed my recommendations, let’s take a 75% discount and you’d still be looking at 188pips (from the 752 potential figure).
Regarding the AUD/USD AU CPI q/q Fundamental Analysis
I felt terrible that so many traders took this as a signal, and I agree as a trade recommendation, it is not the best one that I’ve made; however, the purpose for that particular post is to show the fundamental long-term effect of news such as the CPI has on the market. It would probably be much better if I explained it in detail as to where my entry and my exit would be, and if it was indeed a signal to SELL, I’d probably have done so.
Thank you all for taking the time to read this review… If you made some pips, would you share it here with me? Also I’d appreciate if you can get the word out and share this article on Twitter and Facebook. Much appreciated!
Henry Liu
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{ 33 comments… read them below or add one }
henry Liu
How to subscribe your trade signals?Thank you
First Happy Birthday to you tomorrow!!!
I accidentally landed on your site last week but I sure am glad I did. Of course during the learning I did experience a couple of bad trades. I have found over the years you can not learn without making some mistakes. In all I did still walk away with over 140 pips last week.
I want to say thanks for all the time and energy to provide this service for us. I do appreciate the emails and videos that you have set up. I don’t fear the news any longer thanks to you i rather anticipate it.
Alrighty, another trader fundamentalized
Thanks for all the insight. If you can throw in a little more clarity on sentiment trading
it will be much appreciated.
Forex market is always looking to price in before the news, this is known as “buy on rumor”. That is the basis for sentiment trading. I will be posting a video on this soon.
Buenos dias,
como puedo darme de alta para recibir señales de su servicio….????
gracias y saludos…..
hi henry,
im indonesian. your analysis amazed me very much ! n you are my xavier ! i almost lost my money till i found your website.
n I give my 4 thumbs up to your modesty….
i have a dream to make my mom happy (to give her some money), n i think i can make it comes true…
Thanks so much Henry !
I have been receiving your emails and would very much like to learn your system. I look forward to seeing your videos and studying your trading methods as they are available to learn. Thank you again.
My pleasure!
It’s been great,really,you are doing good job in intimating people like us with the best tool in actualising our dreams.keep it up.More grace to your elbow.
Thanks.
Hi Henry,
I will be nice if I could earn the PIP as what you stated above. Unfortunately, I’m new to this
Trading the news and not sure when is the correct time to enter the trade. It will be good if I
could follow you in your live trade. Pl keep the videos coming. It has been very informative and
learning experience.
Regards
Mohd
Henry, you are really doing a great job. You may not be perfect because you are human, but yet, you\’re great. I was in a sell position on gbpusd long time ago. Do you think this pair will come down soon or it\’ll keep soaring?
Henry, you are really doing a great job. You may not be perfect because you are human, but yet, you’re great. I was in a sell position on gbpusd long time ago. Do you think this pair will come down soon or it’ll keep soaring?
I think gu is likely to stay strong unfortunately. There is no fundamental reason For it to come down.
Sir Henry,
Great predictions and precise from you. But I could not harness it that much. I broke the rule of patience in
letting the profits run. And its perfect good lesson to me. Thanks for every bit of your kindness.
hi herny,
thanks for the good work and for your generosity
Hi henri…,
although I do not understand how to read the news of your fundamental analysis, but thank you because I have started to produce currency pips from your feet.
I Have been trading forex for a little while on short time frames. I am trying to avoid news announcements like the plague, but I am having trouble knowing when they will be.
please let me know what the major announcements to watch out for are and when they occur.
that’s what I do exactly with the newsletters. Make sure you signup for my daily signals.
I was only able to trade the usd/cad pre news release, and the actual news release last week. but I did manage to pick up +90 pips. Thanks for the advice Henry.
Hello Henry,
Thanks a lot.
I made some good pips on the GBPUSD trade because l followed your advice but lost most of it when l stood up to make some tea for myself. You are just wonderful. Please should i trade on GDPUSD THIS WEEK starting 8/2/2010? I need you to inform me when to buy in and close out, l will very much appreciate this information.
Thanks once again, and God bless you.
Prince
Hi Henry-
I love your analysis of the news trades, but just wondered if you are waiting for the retrace on a one minute or five minute candle? I think I noticed both in different videos, and perhaps you may use both depending on the amount of movement you expect. I have read in various articles that you should use the 5 minute candle, wait for the retrace from that, then place the buy/sell. Is this correct?
Nacie: Do a search on my blog for Double Fibonacci Retracement, you’ll see my method there…
Hi Henry,
I did catch the reversal on USD/CAD on friday. The GDP didn’t hit the point deviation and the market started buying USD, but as soon as the equity market opened it dropped tremendously! it dropped to about 100 pips after the equity market closed.
I really appreciate that you share your analysis with us. if its not asking too much, can you include a bit more insight on the possible sentiment trading and the possible reversal on your analysis as well?
I’ll try to be a little more thorough. Thanks
hi, mr. Liu,
i couldn’t understand your explanation on your AUD/USD post of 29/07/2010, are you changing your analysis on the pair? because i followed your recommendation and short it from 0.8960, the trade is still on beleiving that it will turn downtrend before the rate decision as you have predicted. should i close it?
No, exactly the opposite. As a matter of fact, I am still positive about shorting it.
I had a great week trading with Henry. I am proud to say that I gained 1002 pips this past week. I will continue to review my new Mastermind DVDs and follow Henry’s newsletters. It has been a great learning experience. I look forward to gaining more knowledge and pips!
Henry, u doing a nice job. pls keep it up.
I followed ur advice on GBP gaining upper hand, and i didnt bit my finger last week. thanx man.
Hi Mr. Liu
Amazing! Your knowledge, your analyzis, your generous sharing infor how to trade \"News\". I followed your explaination / method last week. I made three trades. Earned a lot of pips but I lost most of them after that because I was in and out during the retracement. I guess I do not truly discipline myself to stay with my trading plan. < stay with your plan and do not greedy > I should learn more how to trade after the news/ during spike. Please let me know when you open a new class . Thank you very much.
Hi Mr. Liu
Amazing! Your knowledge, your analyzis, your generous sharing infor how to trade “News”. I followed your explaination / method last week. I made three trades. Earned a lot of pips but I lost most of them after that because I was in and out during the retracement. I guess I do not truly discipline myself to stay with my trading plan. I should learn more how to trade after the news/ during spike. Please let me know when you open a new class . Thank you very much.
I have done very well trading the news for the month of July and hope to continue into August. I am learning the pre-news recommendation that you put out and I have been watching and read yours for the last few months. Continue with your recommendation in FPA. Also when is your next class going to start for the course that you offer? I am wanting to joint that course and follow you in the webinar during the news.
Thanks for everything
Pat
Sorry, I don’t know why it is showing a sad or angry face on my posting. I did not see anything relating to that but it show be a very happy happy face. LOL
Pat
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