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Forex Signal (Wednesday April 4, 2012 - 10:00am EDT - US ISM - Manufacturing PMI

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Apr 4, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
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    Hello all,

    Today we have US ISM 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 Manufacturing PMI
    Forecast 57.0
    Previous 57.3
    Pair to trade: USD/JPY

    Triggers we need:
    BUY USD/JPY 58.8 (deviation +1.7)
    SELL USD/JPY 53.7 (deviation -3.3)

    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 57.0 We'll be using deviation of 1.8 points in order to BUY.
    In the event that 58.8 is reached, we could see some USD/JPY go up by 30 pips or more and I will go LONG USD/JPY ; however, if we get a negative figure of 53.7 or lower is released, I will be Shorting USD/JPY pair, We'll be using deviation of 3.3 points for the short.

    Euro Crisis
    What is it all about click here for more explanation

    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

    Pre News using EUR/USD
    Prior to the release (20-15 mins) I will be looking for a short term SHORT scalping position in EUR/USD and I will get out of this trade 3 minutes before the actual release or any spreads that should widen. I will be looking for a MA to down trend and using fibornacci to make mark my entry position

    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 25% 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 Manufacturing PMI

    All the best

    Stavro D’Amore
     

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