Originally posted at forexfactory on March 8, 2011
CMHC is the Canadian mortgage housing corporation.The reason why I looked at the trade was because it was classed as a market moving economic release.
To be more exact:
“Annualized number of new residential buildings that began construction during the previous month”
Its forecast was in my opinion going to be good for the CAD so I was looking to short the USDCAD. It was nice to see how the release created a “bearish outside bar” on the hourly chart for the pa traders, as for the order flow traders the move was already over and…
Oh I see. Just say CAD Housing Starts next time, I got confusedÂ
Yeah, thats interesting and good detective work. Good to see you realized the price action was lagging. Most people think price action is not lagging and is better than technical indicators. Well thats true price action is better than technical indicators. But order flow is the king always. Order Flow > Price Action > Technical Indicators.
Although I would not necessarily rely on the Forex Factory ‘Impact’ color to gauge whether it will be market moving. It does a decent job of giving you a broad view of the calendar news releases. I can show examples of where the impact color was on target, but other examples where it was way off. You can get into much deeper and more detailed and more profitable analysis.