our entry. To me, the NFP event is something similar to a holiday feeling because of the anticipation of exciting times ahead. The 2:1 or 3:1 target method worked better, capturing nearly all the downside movement after entry. 1 Friday Trading Strategy (the NFP Release The rule : At the opening of Market US Session, take a look at the first 8:30 bar, you should wait for the next bar going below the low of the 8:30 Bar, or above the high of 8:30 bar. Use always the Parabolic SAR or macd to predict direction moves. Note: There are some months that they may change it the the second Friday of the month but you can check the NFP Calendar below. Depending on volatility and the strength of the initial push, we may need to wait for a couple candles in order for an inside candle to occur. We are then waiting until the price moves above the high or low of that inside bar, anticipating that volatility and the trend could expand in that direction.
The first doesnt trigger because the price doesnt drop below the consolidation low. If the profit target seems way out of wack, use a 3:1 reward to risk target instead. Depending on the entry price, the target may be way out of the realm of possibility, or it may be extremely conservative. NFP Dates in 2015. As the trend progresses, move the stop loss to just below recent swing lows if you are long, or just below recent highs if you are short. When average daily volatility is around 100 pips, if your stop loss is 20 pips, you will likely be able to attain 40 to 60 pips on a winning trade (2:1 to 3:1 reward to risk). Economic growth leads to potential inflation, which is followed by an increase of interest rates to compensate inflationary pressures, which in turn makes the currency more attractive and competitive versus other currencies. With the simple strategy, we are watching for the big move and then letting volatility subside (the inside bar).
Although it s an NFP strategy, it works great with fomc too.
NFP surely is a separate type of trading on its own right and this article will provide more guidance on how to trade and NFP importance, along with its impact on forex, and strategy for trading.
A EUR/USD forex strategy for day trading the non-farm payrolls (NFP) report, including entering the trade and setting a stop loss and target price.
Forex Strategy, entry and Stop Loss Example 15 Minute Chart In figure 2, the initial inside candle that followed the wide-ranging candle is used for the trade trigger.
Following the initial inside candle, two more inside candles followed.