1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Monday December 5, 2011 - 10:00am EDT) - US ISM Non-Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Dec 4, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    Hello,

    Today we have US ISM Non-Manufacturing due for its release; I have provided my strategy and some information in my trade plan below so we can earn some pips.

    US ISM Non-Manufacturing PMI
    Forecast 53.4
    Previous 52.9
    Pair to trade: USD/JPY and EUR/USD
    Triggers we need: 55.4 BUY USDJPY / 51.4 BUY EURUSD

    Economical Impact: High
    Typical Result: Actual forecast is good for the currency
    Occurrence: Released monthly
    Spike Probability: Good, we can see 30 pip spike

    About our Triggers:
    Current forecast is 53.4 We'll be using deviation of 2 points in order to BUY or SELL USD. In the event that 55.4 is reached, we could see some USD strength and JPY weakness. Therefore you could BUY USD/JPY; however, if the opposite is true and a figure of 51.4 or lower is released, expect to see stronger EUR and I will be buying EUR/USD pair


    What is it? And why does the market care?
    It's a leading indicator of economic health and businesses both global and local businesses will react quickly to market conditions. A Higher deviation means industry expansion, lower deviations indicates a significant contraction in the economy. It is derived by a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories

    A higher than expected reading should be taken as positive/bullish for the USD
    A lower than expected reading should be taken as negative/bearish for the USD.

    Method I use to trade this:
    Stavro D’Amore Trading Method

    Indicator Descriptions
    Felix indicator Descriptions

    Revision
    Please keep in mind possibility of Revision number before entering any of these strategies.

    Pre News
    Prior to the release (20-15 mins) I will be looking for a short term long position in EUR/USD and I will get out of this trade 5 minutes before the actual release or any spreads that should widen.

    Spike
    I'd recommend spike trading as an option when if you’re using an ECN broker with controlled fills or a broker that you can get filled with.

    After Release
    I will look for a 35% retracement in the original spike before entering a trade; I will close half my position as soon as I hit the original high point of the first initial spike, and place a SL at entry price. My TP level would be Just before a resistance level or if the chart decides to form a level looking at a 15 min time frame. If my triggers are hit I will defiantly try to run this for over 120 minutes depending on current market volume, to do this I will look for a choppy volume (if you’re using MT4 you would look for the volume bar tab).

    Historical Chart and Data for US ISM Non-Manufacturing PMI



    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Dec 4, 2011
    Lasted edited by : Sep 8, 2016
  2. dave edwards

    dave edwards Private, 1st Class

    Joined:
    Jul 29, 2011
    Messages:
    34
    Likes Received:
    0
    big thank you

    I enjoy reading your comments and your suggested trades. Many thanks
    for the research.
    Dave
    Cape Town
     
  3. nitejar

    nitejar Recruit

    Joined:
    Nov 25, 2011
    Messages:
    1
    Likes Received:
    0
    Hello, Stavro!

    I am new to your service and find what you have to offer interesting, and invaluable in assisting the comprehension
    of this complex market.

    Many thanks.

    Nitejar.
     
  4. Fxonuoha

    Fxonuoha Private, 1st Class

    Joined:
    Aug 11, 2011
    Messages:
    34
    Likes Received:
    0
    SpikeThe pre-news wasn't what I anticipated,anyways,waiting for the retracement of the after spike.
     
  5. Fxonuoha

    Fxonuoha Private, 1st Class

    Joined:
    Aug 11, 2011
    Messages:
    34
    Likes Received:
    0
    what happened out there?Was expecting one huge spike.
     
  6. PipDog

    PipDog Corporal

    Joined:
    Jul 25, 2010
    Messages:
    140
    Likes Received:
    0
    and "anyways,waiting for the retracement of the after spike".


    First, the triggers on the deviation were not hit. Second, what spike are you referring to? Third, why would you be expecting a "huge spike"...?
     

Share This Page