Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello all,
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 53.0
Previous 53.3
Pair to trade: USD/JPY and EUR/USD
Triggers we need: 55.0 BUY USDJPY / 49.9 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 53.0 We'll be using deviation of 2 points in order to BUY or SELL USD. In the event that 55.0 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 49.9 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
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
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 53.0
Previous 53.3
Pair to trade: USD/JPY and EUR/USD
Triggers we need: 55.0 BUY USDJPY / 49.9 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 53.0 We'll be using deviation of 2 points in order to BUY or SELL USD. In the event that 55.0 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 49.9 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
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
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