CA IVEY PMI | November 6, 2012 | Forex Trading Plan

Event Details At-A-Glance:
58.358.560.43.0

The Canada IVEY PMI will be released today. This release is considered a leading indicator that receives much attention from traders; however since this release is after the Canada Employment Change, volatility may be limited… Here’s the forecast:

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10:00am (NY Time) CA IVEY PMI Forecast 58.5 Previous 60.4
DEVIATION: 3.0 (BUY CAD 61.5 / SELL CAD 55.5)

The Trade Plan
Our tradable deviation factor is around 3.0. IVEY PMI is usually tradable when its released before the Canadian Employment Change report. The IVEY PMI is a leading indicator used to predict future trends. The Employment Change is a lagging indicator that is usually two months behind. Therefore, the IVEY PMI report should indicate which direction the employment report will go in the future…

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We’ll look to BUY CAD if we get 55.0 or more. We’ll look to SELL CAD if we get 49.0 or less. I’ll be using Retracement Trading method. To find out more about my trading system, read:
http://www.currencynewstrading.com/how-to-get-started-with-news-trading/

I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: USDCAD.

 

 

   

Outlook Score
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.

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 performance, which can be a leading indicator of overall economic performance.

Thanks,




Currency Pair Stats
Pair2H50+2H50RangeDirectionPN30PN60PN90Spike
EURCAD58.8%54.2%6894.1%31527424
USDCAD45.6%33.3%5694.1%24385020
2H-50+ = % of 50+ pips move in 2hrs. | 2H-50 = % of 50+ pips move in 2hrs. for the last 2 years | Range = average range in 2 hrs. | Direction = % match following news direction | PN30 / PN60 / PN90 = average pips move before news release in 30, 60, or 90 mins. period | Spike = initial average spike
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

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