Non Farm Payroll
The Non-farm payrolls (NFP) report is one of the most anticipated economic news reports in the Forex market. The US Bureau of Labor Statistics releases this report on the first Friday of each month at 8:30 a.m. Eastern Time. While the report is commonly referred to as the NFP, it actually includes a variety of statistics in addition to the change in the number of employees in the country (excluding farm, government, private and non-profit employees). The unemployment rate is one such metric. As traders and investors wait for the NFP report, they carefully analyze and interpret the data to inform their trading decisions. With so much riding on this critical economic report, it’s essential to stay informed and up-to-date on the latest developments in the market.
Integrated Binary Options Services is keenly focused on the monthly release of one of the most highly anticipated economic news events: the Non-farm payrolls (NFP) report. As experts in the Forex market, we understand that this report can have a significant impact on currency pairs, particularly those involving the U.S. Dollar. This often leads to substantial price movements in the minutes and hours following the report’s release, providing an excellent opportunity for our traders to capitalize on the resulting volatility. By carefully analyzing the data and developing sound trading strategies, our team is able to navigate the fast-paced and ever-changing landscape of the Forex market, delivering superior results and helping our clients achieve their financial goals.
NFP REPORT: OUR STEP-BY-STEP APPROACH TO TRADING
The EUR/USD currency pair is the best choice for trading following the release of the NFP report, according to our research at Integrated Binary Options Services. The EUR/USD currency pair, one of the most popular in the world, typically offers the smallest spread and plenty of price movement for trading. This makes it the perfect option for traders looking to profit from the volatility that frequently follows the NFP report. We have discovered that there isn’t much of a reason to day trade any other currency pair during the NFP report, despite the fact that other currency pairs may also present trading opportunities at this time. Our traders can increase their chances of success and produce better results by concentrating on the EUR/USD.
We close all open positions from the previous trading day at least ten minutes before the data’s scheduled release time of 8:30 AM ET. For this strategy, we wait to act until the NFP number has been disclosed rather than taking positions before the announcement. When that happens, there will be a significant rise or fall in price that typically lasts only a few minutes. (occasionally extra). We do nothing during that initial movement. We simply wait. We utilize a EUR/USD 1-minute chart for this strategy.
Our initial move establishes the first trade direction; shortly after 8:30 a.m. ET, the price will rise or fall rapidly, typically by 30 pips or more in a matter of minutes. The larger the initial move, the better for day trading. The initial move tells us whether we should go long or short on our first trade. We will want to go long if the price moves more than 30 pips higher, but only if and when we get a valid trade setup. Which will be covered shortly.
We will look to enter a short position for our first trade if the price decreases by more than 30 pip in the few minutes following the 8:30AM ET release. if and when a trade setup happens.
Once more, the initial rise or fall in the minutes following 8:30AM indicates the direction in which we will be trading. Waiting for a trade setup is the following setup. A trade setup is a series of circumstances that must occur before we can enter a trade. Since no two days are ever exactly the same, we will examine a few variations of the setup because there is frequently a lot of volatility surrounding the news.
OUR REASON FOR THE DELAY:
At least five one-minute price bars must pass after the initial move of 30 pip or more in order for there to be a pullback. This means that if the initial move was upward, we want to see the price fall from that high and remain below it for at least five bars (they don’t all have to be downward bars). The pullback should ideally ensure significant downward movement, but it must not fall below the price at 8:30AM where the initial move started. If the initial move was downward, the price should rally off the low and maintain that level for at least five bars. The pullback should ideally make significant upward progress, but it must not exceed the 8:30AM price, when the Initial down move began.
You can draw a trendline across the height of the price bar (if the initial move was up) or across the lows of the price bars by waiting for at least a five-price-bar pullback. if the first move was downward. Take note that the price bars that make up the pull back are where we are drawing the trendline.
Buy when the bid price crosses above the trendline if the initial move was upward. When the bid price crosses below the trendline, if the initial movement was downward, place a short trade. This is the simplest version of the tactic and it works in most circumstances. Due to its general nature, the pullback occasionally may not offer a trendline that is helpful for indicating an entry. The alternative entry covered in the following section might be useful in these circumstances.
Place a stop loss one pip below the recent low that just formed prior to entry if a long trade is entered. Place a stop loss one pip (plus the width of your spread) above the most recent high that formed before entry if a short trade is entered.
Place a stop loss one pip below the recent low that just formed prior to entry if a long trade is entered. Place a stop loss one pip (plus the width of your spread) above the most recent high that formed before entry if a short trade is entered. If the price reverses more than half of the initial move’s distance afterward (before breaking the pullback trend line and indicating an entry, This is a different approach. Once the price has declined by more than 50% (you can use a Fibonacci retracement tool for this), wait for at least two price bars of consolidation. This indicates that the price oscillates for at least two minutes. Once the second price bar is finished and the third price bar is beginning to form, draw a line along the high and low prices of those two price bars. If the initial movement was upward, purchase if the bid price rises above the consolidation’s high.
If the initial move was downward, position yourself to sell if the bid price falls below the consolidation’s low.
Place a stop loss one pip below the low of the consolidation if a long trade is triggered.
Place a stop loss one pip (plus the amount of your spread) above the high of the consolidation if a short trade is initiated.
