Stavro D'Amore
Former FPA Special Consultant
- Messages
- 547
Hello
All please see trade plan below:
Canadian IVEY PMI
Forecast 57.8
Previous 63.5
Pair to trade: USD/CAD
Numbers we need:
BUY USD/CAD 54.6 Deviation +3.2
SELL USD/CAD 61.0 Deviation -3.2
Economic Impact: High
Typical Result: Good for Currency
Occurrence: 5 days after the month ends
Spike Probability: Very Good, we can see 35 pips on initial spike
About our Triggers:
CA GDP m/m is forecasted to arrive at -0.3%
We are looking for a deviation of 3.2 either way on this trade.
If we get 54.6 or lower I will look to enter a LONG position on USD/CAD and if we get
61.0 or higher I will go LONG on USD/CAD.
Should this report be triggered, we can expect to see about 35 pips on the initial spike. We have no known conflict for this release. This trade will have a good chance of a 20% retrace on the initial spike don’t be fooled and get in unless you see at least 30%
What is it? And why does the market care?
The Ivey Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in Canada.
Any reading above 50 indicates expansion, while a reading below 50 indicates contraction. It gives an indication about the health of the manufacturing section and production growth in Canada.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the CAD.
A lower than expected reading should be taken as negative/bearish for the CAD.
Method I use to trade this:
Stavro D’Amore Trading Method
I do recommend spike trading as an option also the liquidity is very good at the moment if you are using an ECN broker.
I will look for a 30-50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.
Historical Chart and Data for CA IVEY PMI
All the best
Stavro D’Amore
All please see trade plan below:
Canadian IVEY PMI
Forecast 57.8
Previous 63.5
Pair to trade: USD/CAD
Numbers we need:
BUY USD/CAD 54.6 Deviation +3.2
SELL USD/CAD 61.0 Deviation -3.2
Economic Impact: High
Typical Result: Good for Currency
Occurrence: 5 days after the month ends
Spike Probability: Very Good, we can see 35 pips on initial spike
About our Triggers:
CA GDP m/m is forecasted to arrive at -0.3%
We are looking for a deviation of 3.2 either way on this trade.
If we get 54.6 or lower I will look to enter a LONG position on USD/CAD and if we get
61.0 or higher I will go LONG on USD/CAD.
Should this report be triggered, we can expect to see about 35 pips on the initial spike. We have no known conflict for this release. This trade will have a good chance of a 20% retrace on the initial spike don’t be fooled and get in unless you see at least 30%
What is it? And why does the market care?
The Ivey Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in Canada.
Any reading above 50 indicates expansion, while a reading below 50 indicates contraction. It gives an indication about the health of the manufacturing section and production growth in Canada.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the CAD.
A lower than expected reading should be taken as negative/bearish for the CAD.
Method I use to trade this:
Stavro D’Amore Trading Method
I do recommend spike trading as an option also the liquidity is very good at the moment if you are using an ECN broker.
I will look for a 30-50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.
Historical Chart and Data for CA IVEY PMI
All the best
Stavro D’Amore
