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Forex Signal (Tue January 4 2010, 4:30am NY Time EST) - UK Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Jan 3, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    Manufacturing PMI is a leading indicator and it’s usually released during early month. Traders pay attention to this release for surprises as this survey may help to shape the general trend of the currency for the rest of the month. Here is the forecast:

    4:30am (NY Time) UK Manufacturing PMI Forecast 57.3 Previous 58.0
    ACTION: GBP/USD BUY 59.5 SELL 54.5

    The Trade Plan

    We are looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of around 2.0, and because this is a leading indicator and its impact may hint that the future trend of other economic indicators (such as inventory, employment, retail sales, etc..) , therefore market should react to this release with volatility if we get our deviation.

    We will be looking to BUY GBP/USD if we get a 59.5 or better, or looking to SELL GBP/USD if we get a 54.5 or worse, we’ll be using the Retracement Trading Method to trade this release. For more information, read:
    Henry's News Trading Method

    The Market
    It seems that GBP is still looking for direction, despite of the moderate rally during the last couple of weeks against USD. With the pair's outlook at neutral, GBPUSD may find direction after today's release.

    At any rate, I believe due to the low liquidity condition, if we get a strong deviation, market should move significantly.

    Additional Thoughts
    Officially we are going to be trading Retracement Trade, but if we get a deviation of 3.5 points, it justifies for a spike trade.

    Pre-news Considerations
    There should be no pre-news for this release.

    DEFINITION
    “UK Manufacturing PMI is a survey of purchasing managers in the manufacturing sector on various economic activities, including inventory, employment, orders, etc… A higher than 50 reading means expansion, or a less than 50 reading means contraction.”

    Historical Chart & Data For UK Manufacturing PMI

    Thanks,


    [​IMG]
     
    #1 Henry Liu, Jan 3, 2011
    Lasted edited by : Sep 8, 2016
  2. kajsa

    kajsa Recruit

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    This signal was really a hit!!! Thanks Henry
     
  3. PipDog

    PipDog Corporal

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    How So?


    How was this signal "a hit"? The trigger was not hit, therefore was a No Trade.
     
  4. kajsa

    kajsa Recruit

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    The dev was not hit, but for me it was definatley tradable, massive spike and I made 25 pips, usually I make only 10 pips, so for me it was a hit,

    regards Kajsa
     

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