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Forex Signal (Thu May 5 2011, 10:00am NY Time EST) - CAD Ivey PMI

Discussion in 'Current Forex Trading Signals' started by Henry Liu, May 4, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

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    We’ll be getting the Canada IVEY PMI today, since this is a leading indicator, traders pay attention for this release, especially during the same week prior to Canada Employment Changes. Here’s the forecast:

    10:00am (NY Time) CA IVEY PMI Forecast 67.1 Previous 73.2
    ACTION: USD/CAD BUY 64.1 SELL 70.1

    The Trade Plan

    Our tradable surprise factor is 3.0. IVEY PMI is usually tradable before the Canadian Employment Changes, however it is important to note that IVEY PMI is a leading indicator and Employment Change is a lagging indicator, and both are figures from different month but the consensus is that if we are starting this month on a positive note, the previous month should not be too far behind.

    We’ll look to BUY USDCAD if we get 64.1 or less, and we’ll look to SELL USDCAD if we get 70.1 or better. I’ll be using Retracement Trading method. To find out more about my trading system, read:
    Henry Liu's Trading Method


    The Market
    We’ll focus on the IVEY PMI (IVEY Purchasing Manager’s Index) from Canada today, it is the equivalent of both ISM PMI’s out of US where purchasing managers of all sectors of the economy participate in this survey. And as with PMIs, they are all considered as leading indicators with the medium point at 50, therefore a reading of above 50 would be considered as expansion in the economy whereas a reading below 50 would be considered as contraction in the economy.

    Additional Thoughts
    USDCAD may not retrace much after a strong release, the retracement may also take place in the first 5 minutes, so once we see a significant retracement, get ready to jump in.

    Pre-news Considerations
    No Pre-news trade for this release.

    DEFINITION
    “The Ivey Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers from all sectors of the economy, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performanerformance.”


    Historical Chart and Data for CAD Ivey PMI



    Thanks,


    [​IMG]
     
    #1 Henry Liu, May 4, 2011
    Lasted edited by : Sep 8, 2016
  2. Jakob26

    Jakob26 Recruit

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    Hi Henry,

    first of, I think you´re doing great reports on news trading.
    I haven´t started following your recomendations yet cause I don´t feel comfortable enough sitting alone with these kinds of trades.

    In the thread where you posted a video to explain the retracement method you´re talking live to a couple of people, my question is:
    Is that a service you run? If so how can newbie like me get a hold of this service?

    Cheers

    Jakob
     
  3. magister

    magister Recruit

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    News Trading

    Jacob,

    try <a href="www.profitmongers.com">www.profitmongers.com</a>

    they trade these news releases and much more, you also get 'Just-The-news' software which gets u the news lightening quick when it is released, sometimes faster than bloomberg.
     
    #3 magister, May 6, 2011
    Last edited: May 6, 2011

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