US ISM Non-Manufacturing PMI – May 3, 2012 – Forex Trading Strategy

us ism US ISM Non Manufacturing PMI   May 3, 2012   Forex Trading StrategyISM or Institute for Supply Management is releasing its PMI (Purchasing Manager Index) and its similar to the UK Services PMI as this release is targeting the services sectors. As a leading indicator, traders generally pay attention to this report for hints of economic trend.

10:00am NY Time US ISM NonManufact. PMI Forecast 55.5 Previous 56.0
Deviation: 2.5

Trade Plan
U.S. ISM Non-Manufacturing PMI is better known as the U.S. Services PMI; the current expectation is above the 50 level at 55.5. This figure indicates an expansion in the services sector where 50 is the medium point for the PMI. We´ll be using a deviation of around 2.5 points in order to BUY USD and 3.5 points in order SELL USD. In the event that 58.0 is reached, we could see some USD strength and we should focus on trading against weaker currencies. If the opposite is true and a figure of 52.0 is released, expect to see weaker USD and we should trade with stronger currencies…

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If our tradable releases are reached, there is a good expectation that the market will move 50 pips within the next 120 minutes, please focus on the pairs recommended above.

I´ll be using my retracement trading method for this release, for more information on my news trading methods, please read:
http://www.currencynewstrading.com/how-to-get-started-with-news-trading/

DEFINITION:
The Institute of Supply Management (ISM) Non-Manufacturing Index measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation´s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company´s performance, which can be a leading indicator of overall economic performance.

Thanks,

henry sig US ISM Non Manufacturing PMI   May 3, 2012   Forex Trading Strategy

Avatar of Henry Liu About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Comments

  1. avatarjay says:

    next time dont put news that not mentions currency like us ism,,,you put this i trade and lostt many hundred dollars

    • Avatar of Henry LiuHenry Liu says:

      The only problem is that we didn’t get the deviation, so you should have skipped the trade… don’t know why you lost hundreds of dollars if it was a no trade… you can’t follow one thing and ignore the other, you have to follow it all… and I know this is hard but you need to take responsibility for YOUR OWN ACTIONS, and only when you do, you’ll improve as a trader.

  2. avatarnurhadi says:

    whether to buy 58 and sell 52 for us, thank you

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