Forex Signal (Friday September 9, 2011 – 7:00am EDT) – CA Employment Change

Stavro D'Amore

Former FPA Special Consultant
Messages
547
Hello All,

Today we have Canadian Employment Change and Canadian unemployment rate due to arrive at the same time.
Current unemployment rate in Canada is 7.3% I do not expect these numbers to conflict with the with CA Employment change.

I have added a few extras to this trade plan that should assist you in your trading, Please find my trade plan bellow.

Canadian Employment Change
Forecast 24k
Previous 71.k
Pair to trade: USD/CAD


Numbers we need:
BUY USD/CAD -1k
SELL USD/CAD 50K


Please note: In the past I have used EUR/CAD pair for spike trading and I have found that I do get better fills on spike, should you decide to use this pair for spike trading it would not be a bad option.

The following report will show you previous month’s movement, this will be a good indication on what will expect on this trade should we get our triggers

Average Pip ranges from time of release



Economical Impact: High
Typical Result: Good for Currency, this forecast is predicated to be bad for the currency
Occurrence: About 8 days after the month ends
Spike Probability: Excellent, we can see a 120 pip range and 50 pip on initial spike

About our Triggers:
CA Employment Change is forecasted to arrive at 24K
And CA Unemployment rate is forecasted to arrive at 7.3% from 7.2%
However today we will be trading the Employment change release, if we 50K or higher I will look to enter a SHORT position on USD/CAD and if we get -1K or lower I will go LONG on USD/CAD.
Should this report be triggered, we can expect to see a 50 pips on spike. This report is known to have double spikes so if you miss the retracement on the first spike or it does not retrace, please be patient and wait for retracement on the second spike, I would then need a 50% retracement to enter.

What is it? And why does the market care?
The Employment Change measures the change in the number of employed people in Canada in the given month. A rise trend indicates strength in the labor market and has a positive affect on consumer spending and therefore on the economic growth.

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 will look for a pre news trade on this report, I would look at current volumes and ensure volume is not flat (this is important) and enter about 15 min prior to the news for a LONG position in USD/CAD. I would have a tight SL of 15 pip plus spread, My most likely entry point will be when I see momentum and MACD indicators both cross over on a 1min chart and a 5min chart, once that is confirmed I will enter my LONG position with a Take profit Target of 15-20 Pips.

I do recommend spike trading as an option for this report i would also consider in using EUR/CAD to trade this report on spike.

I will look for a 30-50% retracement in the original spike before entering any trade.
I will sell half my position as soon as I hit the original high point of the first initial spike or a resistance level and place a SL at the entry price of the first initial spike. 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 Employment Change

All the best

Stavro D’Amore
 
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Pinduur

Recruit
Messages
1
Hello!

I think it won't be necessary to say that I'm new in the FX world, because the question will do it :)

Numbers we need:
BUY USD/CAD -1k
SELL USD/CAD 50K


What the -1k and 50K meaning ?
Thanks for your help :embarrassed:

Stavro, thank you for signal!

Regards,
Zsolt
 

qwerty63

Private
Messages
16
Thanks for making your signals more detailed, especially details on pre-news trades, that's what I like. It's good that we can better understand what you're going to do by yourself.
Thanks
 

Stavro D'Amore

Former FPA Special Consultant
Messages
547
Thanks for making your signals more detailed, especially details on pre-news trades, that's what I like. It's good that we can better understand what you're going to do by yourself.
Thanks
Yes I wish I can go into more detail but it so hard as when you do it in live circumstances lots of things change and the last thing i want to do is provide poor information, I want all my followers and clients to always make money and be happy because if there happy i'm overwhelmed! :D
 

Aldo Colombo

Corporal
Messages
107
Hello!

I think it won't be necessary to say that I'm new in the FX world, because the question will do it :)

Numbers we need:
BUY USD/CAD -1k
SELL USD/CAD 50K


What the -1k and 50K meaning ?
Thanks for your help :embarrassed:

Stavro, thank you for signal!

Regards,
Zsolt
Look at CA Employment Change m/m due at 7EDT sharp today, if it´s -1 or lower then buy USDCAD, if it's 50 or higher, sell USDCAD.
 

creatifx

Recruit
Messages
3
Perfect Trading Plan

Just want to say Thanks. I followed your trading plan - absolutely perfect. Really good work!
 
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