What are Durable Goods Orders?

What are Durable Goods Orders?

Durable goods orders measure new orders placed with domestic manufacturers for goods expected to last three years or longer, such as aircraft, vehicles, and machinery. The report is a leading indicator of manufacturing activity.

Key Components

• Headline orders: Includes volatile transportation items.
• Core capital goods: Excludes defense and aircraft to reveal underlying business investment.
• Revisions: Prior-month updates can move markets.
• Shipments and inventories: Provide insight into production trends.

Trading Durable Goods Data

• Focus on core figures: Core orders offer cleaner signals than the headline.
• Compare to forecasts: Surprises relative to consensus drive reactions.
• Cross-check: Align with PMI and industrial production data.
• Watch revisions: Secondary moves occur when prior data is heavily revised.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.