FOREX Nonfarm Payrolls
trading strategy on Nonfarm Payrolls
trading strategy on Nonfarm Payrolls is quite simple but very effective and allows you to make a profit in the range of 100-150 points in 1-3 hours of trading, but it requires a certain skills of trade, which I will discuss below.
Nonfarm Payrolls - an important U.S. economic indicators, which goes into 16:30 MSK to the 1st Friday each month (next time it will be published August 7, 2009 - is TOMORROW ). Immediately after its publication, the forex market reaction to the output of this news is very powerful, and it follows that the output of the news can be good money .
Usually the day of publication Nonfarm Payrolls are very few traders come into the trading process to the release of Nonfarm Payrolls (abbr. NFP). During this period, the forex market often provides false breakouts or levels of trading in a fairly narrow (30-70 pips) range. And the main trading capacity will be involved at the time of the news.
So, point strategy forex trading Nonfarm Payrolls following:
5-10 minutes before the publication rate NFP must set pending orders in the trading terminal MT4. Since NFP is difficult to predict, and the reaction of the forex market to the published indicator NFP generally unpredictable, so you must set pending orders in the two opposite sides (buy and sell).
If you have an open trading positions until the NFP, its still better to close , because even if you install a safety stop-loss is closer to the price and the market will open to the side with a gap against you, then you risk that your order will be closed not at the price stop-loss, and the market price at the time of the news ( on the opening price gap ), and sometimes it happens and 20-70 points, which can be very detrimental to your deposit . Although if the market will open in your direction - you can earn good money - that is, 50% to 50% - of course you decide ...
mainly after the publication of NFP, the market for the first moment tends to move in one direction, then usually there is a sharp movement in the opposite direction. So, to try to avoid unwanted operation of our pending order, put them at a distance of 35 pips from the level of prices to the news (see Figure 1):
Figure 1 - pending orders before the release of Nonfarm Payrolls
So pending orders were taken. And now it is necessary to take care of the stop-loss orders, they must be put to a distance of 20-30 pips the price of entry into the market . And importantly, remember - stop-loss should be set almost simultaneously with the pending orders for the breakdown (this is necessary if you suddenly lost your broker or bond prices behave inadequately to the news or after).
at the expense of take-profit , I usually put it at a distance of 70-100 pips from entry price in the market.
After the data were published Nonfarm Payrolls (16.30-16.31 Moscow time), the price on the forex market is very sharp jerk either upwards or downwards. It seems likely that one of 2 of your pending orders will be opened. If you notice a gain on a deployed warrant privyshat 25-30 pips, you need to quickly move the stop-loss order in the "breakeven", and a second warrant to remove (again trailing stop - in this case, just your friend He gives the order for the permutation order garazdo faster than a human).
And now you have 3 options:
or you treylingovat your order at a safe distance - 10-25 points (depending on the chosen currency pair and valotilnosti in the market than it is stronger, the smaller the Trailing Stop and pitch)
expect or how to behave in price (in this order must already be moved to zero)
or else close the portion of the profits (eg 50%), while the rest remain in the market.
After 20-25 minutes after the publication of data on Nonfarm Payrolls must identify focus in the forex market.
If profits were not you zafiksirovanna earlier, between 16:45-17:05 - it's time to do it.
If the market has opened one of the orders and the price is hovering around the maximum in 10-15 minutes on one important level ( hang - the movement in the price range of 15 pips without further promotion of price .) In this case, you need to quickly fix your income received as expected to turn in the market. It was freezing prices on the forex market said that the mood changes.
See picture. 2:
Preparing for re-transactions (16:45-17:05)
So, we got a portion of profits from the first deal and now must decide how to sell more.
There are 2 options:
trade in the direction of the triggered 1st order
wait to go price and move along with it.
And just work pending orders in the two opposite sides.
Immediately after the closure order - expose the 2 pending orders - 1 st pending order is directed towards your last closed trades (order of the breakdown should be within 10 pips higher (lower) maximum (minimum) hai (Lo) in Nonfarm Payrolls (see Figure 3)), 2-d exposed on the basis of 50% - 5 pips (if the market price is greater than fifty percent growth (decline), it is very likely to return again to the beginning of their movement to news) - see Figure 3:
Figure 3 - Preparing to enter the market (again)
repeated dealings (time 16:50 - 17:10)
Once you enter the market again on one of the placed pending ordere, the second can be removed. Stop-loss order just as soon as possible to put in breakeven , to avoid possible losses.
So, if you have opened a pending order in the direction of the first of your open orders, it means the purposeful movement of prices, and it tends to last for at least 70-150 pips.
After the 2nd entrance opening an order you may experience with the new prices hovering in the market (from 17:10 do17: 50)
A re-freeze the prices are most likely near the starting point of the movement after the news on Nonfarm Payrolls. So if you see the re-hang for 10-15 minutes - fix profit as quickly as possible.
latest entry into the market for Nonfarm Payrolls (from 17:50 to 18:10) on the possible breakdown point of freezing the market.
open in the opposite direction, I absolutely do not need, because if the market price again returns to the half time span after the NFP, it will say that the force Bulls and Bears in the currency market are approximately equal, and move the price direction of least resistance at this point is quite difficult. Pending Orders are putting the same pattern: high or low 10 or -10 pips - see Figure 4:
Figure 4 - Entering the final market.
last time to take profits in the range of 18:50-19:30 GMT.
Yet best option, in my opinion - is trading with a trailing stop of 10-15 pips and close a position on a warrant stop-Trade (the same "stop-loss", but in the positive area).
Assessment of Trade in Nonfarm Payrolls (NFP) - the trade was successful, if the profit after fixing all the orders for this news was about 100-120 pips. But there are moments when the forex market provides an opportunity to take more profit 150 pips - and this simply is not wise to not use!