Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
CA Housing Starts
Forecast 193K
Previous 201K
Pair to trade: USD/CAD
The triggers we need: BUY 213 SELL 173
Economical Impact: Medium to High
Typical Result: The actual forecast is good for the currency
Occurrence: Monthly, about 9 days after the month ends
About our Triggers:
I like to trade this report / sentiment as I usually get a good fill as there are not many traders that trade this release; therefore if you are using an ECN broker and have tight entry levels, you should get a good fill and make a few pips. This news is tradable with a minimum deviation of 20 for a BUY and -20 for a SELL, which is the difference between the forecast and the actual release. Our triggers are conservative and this will ensure a good fill.
Why do we care? And what is it?
This is a leading indicator of economic health because building construction produces a wide-reaching ripple effect, which is the first sign of a dismal or poor performing economy. Example: jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder. While this is monthly data, it is reported in an annualized format (monthly figure over 12 months). Market impact tends to vary and is occasionally quite hefty.
Method to trade this: Stavro D’Amore Trading Method
I would recommend spike trading as the best option. Please have a minimal slippage of 5 pips on this release as if triggered, we could see a 15 pip spike or slightly more.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade. I will sell all of my positions as soon as I hit the original high point of the first initial spike and place a SL at my entry price. My TP level would be 5 pips more than the original high.
Historical Chart and Data for CA Housing Starts m/m
All the best
Stavro D’Amore
Forecast 193K
Previous 201K
Pair to trade: USD/CAD
The triggers we need: BUY 213 SELL 173
Economical Impact: Medium to High
Typical Result: The actual forecast is good for the currency
Occurrence: Monthly, about 9 days after the month ends
About our Triggers:
I like to trade this report / sentiment as I usually get a good fill as there are not many traders that trade this release; therefore if you are using an ECN broker and have tight entry levels, you should get a good fill and make a few pips. This news is tradable with a minimum deviation of 20 for a BUY and -20 for a SELL, which is the difference between the forecast and the actual release. Our triggers are conservative and this will ensure a good fill.
Why do we care? And what is it?
This is a leading indicator of economic health because building construction produces a wide-reaching ripple effect, which is the first sign of a dismal or poor performing economy. Example: jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder. While this is monthly data, it is reported in an annualized format (monthly figure over 12 months). Market impact tends to vary and is occasionally quite hefty.
Method to trade this: Stavro D’Amore Trading Method
I would recommend spike trading as the best option. Please have a minimal slippage of 5 pips on this release as if triggered, we could see a 15 pip spike or slightly more.
Should you not get a spike trade, I will look for a 30% retracement in the original spike before entering a trade. I will sell all of my positions as soon as I hit the original high point of the first initial spike and place a SL at my entry price. My TP level would be 5 pips more than the original high.
Historical Chart and Data for CA Housing Starts m/m
All the best
Stavro D’Amore
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