Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
UK Manufacturing Production m/m
Forecast 0.3%
Previous 1.8%
Pair to trade: GBP/USD
The triggers we need: BUY 2.1% SELL 1.5
Economical Impact: Medium to High
Typical Result: The actual forecast is good for the currency
Occurrence: This Released monthly, about 40 days after the month ends
About our Triggers:
I like to trade this report / sentiment as I usually get a good fill as there are not many traders that trade this release; therefore if you are using an ECN broker and have tight entry levels, you should get a good fill and make a few pips. This news is tradable with a minimum deviation of 1.8 for a BUY and -1.8 for a SELL which is the difference between the forecast and the actual release. Our triggers are conservative and this will ensure a good fill.
Why do we care? And what is it?
Manufacturing makes up around 80% of the total Industrial Production and tends to dominate the market impact. It is a leading indicator of economic health and the production sector reacts quickly to highs and lows in the business cycle. It is correlated with consumer conditions such as employment levels and earnings.
Method to trade this: Stavro D’Amore Trading Method
I would recommend spike trading as the best option. Please have a minimal slippage of 7 pips on this release as if triggered, we could see a 15-18 pip spike.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade. I will sell all of my positions as soon as I hit the original high point of the first initial spike and place a SL at my entry price. My TP level would be 5 pips more than the original high.
Historical Chart and Data for UK Manufacturing Production m/m
All the best
Stavro D’Amore
Forecast 0.3%
Previous 1.8%
Pair to trade: GBP/USD
The triggers we need: BUY 2.1% SELL 1.5
Economical Impact: Medium to High
Typical Result: The actual forecast is good for the currency
Occurrence: This Released monthly, about 40 days after the month ends
About our Triggers:
I like to trade this report / sentiment as I usually get a good fill as there are not many traders that trade this release; therefore if you are using an ECN broker and have tight entry levels, you should get a good fill and make a few pips. This news is tradable with a minimum deviation of 1.8 for a BUY and -1.8 for a SELL which is the difference between the forecast and the actual release. Our triggers are conservative and this will ensure a good fill.
Why do we care? And what is it?
Manufacturing makes up around 80% of the total Industrial Production and tends to dominate the market impact. It is a leading indicator of economic health and the production sector reacts quickly to highs and lows in the business cycle. It is correlated with consumer conditions such as employment levels and earnings.
Method to trade this: Stavro D’Amore Trading Method
I would recommend spike trading as the best option. Please have a minimal slippage of 7 pips on this release as if triggered, we could see a 15-18 pip spike.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade. I will sell all of my positions as soon as I hit the original high point of the first initial spike and place a SL at my entry price. My TP level would be 5 pips more than the original high.
Historical Chart and Data for UK Manufacturing Production m/m
All the best
Stavro D’Amore
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