USD ISM Manufacturing Index is a good trade if you'll take the opposite . A good number for ISM index will rise shares market and USD will fall. Last month was the same story. A gap followed by a fall. FNG entered after the gap was formed.
USD ISM Manufacturing Index - Tue, 03 Sep
View attachment 11445
Hi,
'A gap followed by a fall.' - Indeed, after more than an hour on your chart. The spike on 5M was 29 pip long in positive (see below). In this spike trading method I don't recommend you to keep a position open longer than two minutes - at least close it partially.
'A good number for ISM index will rise shares market and USD will fall.' - Sounds reasonable, however, the market doesn't behave like that on one minute scale. If it did I would do the opposite without caring much about reasonings. You can take a look at
historical charts - just don't forget to switch to USDJPY on the left. Just a short excerpt (event candles from Open to High/Low in pips):
Oct 1 >> deviation: +1.2 spike: +15 pips (not triggered)
Sep 3 >> deviation: +1.7 spike: +29 pips (not triggered)
Aug 1 >> deviation: +3.4 spike: +31 pips (triggered)
Jul 1 >> deviation: +0.4 spike: +16 pips (not triggered)
Jun 3 >> deviation: -1.5 spike: -30 pips (not triggered)
May 3 >> deviation: -0.2 spike: +11 pips (not triggered)
Apr 1 >> deviation: -2.8 spike: -21 pips (triggered)
So if you have a strategy giving positive results based on opposite entries on longer term please tell us your trade plan to let fellow traders start experimenting with it.
Thanks,
Peter