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Forex Signal Wednesday October 5, 2011 - 10:00am EDT - US ISM Non-Manufacturing PMI

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

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    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
     
    #1 Stavro D'Amore, Oct 4, 2011
    Lasted edited by : Sep 8, 2016

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