U.S. Durable Goods Orders Forex Trading Strategy

The U.S. Core Durable Goods Order is a high impact fundamental data release that can swing the market heavily in either direction, depending on the numbers and investor sentiments.

The data gauges the change in the aggregate worth of new orders covering long lasting manufactured goods, minus transportation items.

Considering that aircraft orders are quite volatile, the core number offers a healthier measure of ordering trends.

Increased manufacturing activity is indicated by a higher durable goods orders number.

On the fundamental side of things, a higher than expected reading should be viewed as bullish or positive for the greenback, whereas a lower than expected reading should be seen as bearish or negative for the greenback.

The U.S. Durable Goods Orders forex trading strategy is an approach that deploys technical analysis as a means of catching trends during such data releases.

Chart Setup

MetaTrader4 Indicators: Ultimate-Oscillator.ex4 (default setting), True Range Envelopes.ex4 (color & width modified)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes

Recommended Trading Sessions: After news release

Currency Pairs: Pairs including USD

Download

Download the U.S Durable Goods Orders Forex Trading Strategy

Trade Example (Click the image for full size)

US-Durable-Goods-Orders-Forex-Trading-Strategy

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy position when the following chart patterns are in display 20-minutes after the release:

  1. If the blue line of the Ultimate-Oscillator custom indicator crosses the 48.75 level, it is a signal that price is in a bullish trend.
  2. If a bullish candle closes above the middle line of the True Range Envelopes custom indicator, it is a signal for a buy.

Stop Loss for Long Entry: Place stop loss just below entry candle on the lower outer band of the True Range Envelopes custom indicator.

Exit Strategy/Take Profit for Long Entry

Exit or take profit on long position if the following chart pattern are in display:

  1. If the blue line of the Ultimate-Oscillator custom indicator crosses the 48.75 level downwards, it is a signal that price is reversing, hence an exit or take profit is appropriate.
  2. If price bars breaches the middle band of the True Range Envelopes custom indicator downwards, it is a signal that price is driving lower, an exit or take profit is most suitable.

Sell Entry Rules

Place a sell entry when the following chart or indicator pattern are in display:

  1. If the blue line of the Ultimate-Oscillator custom indicator falls below the 48.75 level, it is a sell signal.
  2. If a bearish candle closes below the middle line of the True Range Envelopes custom indicator, it is a signal that price is being pushed lower – a sell is in order.

Stop Loss for Sell Entry: Place stop loss just above entry candle on the upper outer band of the True Range Envelopes custom indicator.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following conditions or rules are met:

  1. If the blue line of the Ultimate-Oscillator custom indicator breached the 48.75 level upwards, it is an exit or take profit signal.
  2. If price bars breaches the middle band of the True Range Envelopes custom indicator upwards, exit or take profit on position(s).

Free Download

Download the U.S Durable Goods Orders Forex Trading Strategy

About The Trading Indicators

The True Range Envelopes custom indicator is a trend indicator that uses the SMA (14) as its middle band along with two outer upper and lower bands forming a channel.

The Ultimate-Oscillator.ex4 custom indicator is an oscillator that ranges between the ranges of 22.24 (fixed minimum) and 75.26 (fixed maximum).

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