What is a PMI, and why do traders care about it?

Purchasing managers' indices are monthly surveys of business conditions, and they move markets because they arrive early and predict turning points in growth. The 50 level separates expansion from contraction.

What is a PMI, and why do traders care about it? — support and resistance diagram
Price bouncing between support and resistance

Beginners: what confused you about PMI at first? Experienced members: how do you use the manufacturing versus services numbers?

What is a PMI, and why do traders care about it? — risk-reward diagram
A risk-reward ratio of 1 to 2

The PMI guide explains how the surveys work and how traders read them.

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