May 1, 2012 Forex Trading Strategy
Manufacturing PMI is a leading indicator that is usually released early in the
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:
4:28am (NY Time) UK Manufacturing PMI Forecast 51.5 Previous
52.1ACTION: GBP/USD BUY 53.5 SELL 49.0
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.”
The Trade PlanWe´re looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.0. Since this is a leading indicator and its impact may hint the future trend of other economic indicators (such as inventory, employment, retail sales, etc..), the market usually reacts to this release with volatility if we get our deviation.
We´ll be looking to BUY GBP/USD if we get a 53.5 or better, or looking to SELL GBP/USD if we get a 49.0 or worse.
BOOKS FOREX
Getting Started in Forex Trading Strategies - Michael Duane Archer - EUR 15,11
Getting Started in Currency Trading: Winning in Today's FOREX Market - Michael Duane Archer- EUR 12,78
The Everything Guide to Currency Trading: All the Tools, Training, and Techniques You Need to Succeed in Trading Currency - David Borman - EUR 13,33
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.”
The Trade PlanWe´re looking for a tradable deviation (or the difference between the forecast figure and the actual release figure) of 2.0. Since this is a leading indicator and its impact may hint the future trend of other economic indicators (such as inventory, employment, retail sales, etc..), the market usually reacts to this release with volatility if we get our deviation.
We´ll be looking to BUY GBP/USD if we get a 53.5 or better, or looking to SELL GBP/USD if we get a 49.0 or worse.
BOOKS FOREX
Getting Started in Forex Trading Strategies - Michael Duane Archer - EUR 15,11
Getting Started in Currency Trading: Winning in Today's FOREX Market - Michael Duane Archer- EUR 12,78
The Everything Guide to Currency Trading: All the Tools, Training, and Techniques You Need to Succeed in Trading Currency - David Borman - EUR 13,33
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