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Forex Signal (Monday February 6, 2012 – 10:00am EDT) – CA IVEY PMI

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Feb 5, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    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
     
  2. croatpolish

    croatpolish Recruit

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    Canadian PMI YTrade Plan - Time Frame?

    Hi Starvo

    Just wondering do you intend to be in this trade for 20mins / 1 hour ? 3 Hours? (If the deviation of 3.2 either way happens)

     
  3. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
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    I will have to see how the current market conditions play and if there is a retrace
    If you have any questions about trading or feedback on how to improve things let me know.

    I can be contacted stavro.damore@hotmail.co.uk
     
  4. dp99

    dp99 Recruit

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    "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. "

    I think you meant SHORT here.

    Love the signals Stavro, thanks!!!
     

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