Forex Signal (Tuesday December 6, 2011 – 10:00am EDT) – CA IVEY PMI

[Stavro D'Amore]

Hello

Please see my trade plan for CA IVEY report


Canadian IVEY PMI
Forecast 55.0
Previous 54.4
Pair to trade: USD/CAD

Numbers we need:
BUY USD/CAD 52 (+3)
SELL USD/CAD 58 (-3)

Economical 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 IVEY is forecasted to arrive at 55
We are looking for a deviation of 3 either way on this trade.
If we get 52 or lower I will look to enter a LONG position on USD/CAD and if we get
58 or higher I will go SHORT 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

Felix Descriptions:
Indicator Descriptions

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

 

[Louis123321]

How you all doing with this one? 9 min into the trade and it hasn't retraced to its highest point yet. Getting kinda worried here.

Will reply shortly to report my loss or gains.. *pray* please go back down USDCAD

Anyone predict it going back down or should i close this out for a loss ?

 

[Louis123321]

^^ update to the above **

For those interested, here is how the trade played out for me (+31 min into trade time now & ive closed all trades to be safe)

I got 3 sell trades opened at 50% of the bar (not retracement, just fast clicking/requotespam) I closed 1 of the trades at the original high point for profit, i left the other trades open. As it recoiled back to the upside PAST the price the spike started at, I closed 1 sell trade for 50% of the profit (loss) of the 1st winning trade. I then left the other trade open till the highpoint (minus 2 pips) was reached for another small profit.

So all in all i'm up about 20 pips still.

Thanks Stavro, your signals are GREAT to go alongside any existing trade strategys! Keep up the good work, you make me money almost every day of the week.

 

[PipDog]

How you all doing with this one? 9 min into the trade and it hasn't retraced to its highest point yet. Getting kinda worried here.

Will reply shortly to report my loss or gains.. *pray* please go back down USDCAD

Anyone predict it going back down or should i close this out for a loss ?

This news doesn't move the market very much, and, the USDCAD will follow the Risk Trade within a few minutes of the news. If stocks go up, USDCAD will go down. If stocks start down, the USDCAD will go up. So far, stocks are edging up, so, the USDCAD has edged down. It looks to me that stocks are setting up for a reversal down...and the USDCAD is a BUY. Just my opinion.