Wait for the 1st Candle to close after 5 mins from the announcement and place a Line at that point. Then look for the near’est support level’s and watch which way price goes on the 2nd candle and enter either up or down at that sopport level, Beware price may move around quite a bit then carry on in the direction you should have entered most of the time.
[B]Concervative way to trade the NFP. Dose’nt work all the time[/B]
I really enjoyed your posting… lots of information.
Regarding the NFP news trading - How long after the news do you put the trade? Do you trade immediately the candle after the release or do you let it form completely? The reason I asked is because I tried trading NFP last month and it was a mess! Usually I was told to wait 15 mins after the news release to get a channel and then box trade after the channel break but for the NFP and most of the major news, there have not been any channels. I tried to straddle but it went for my price and reverse causing a big loss. Also, do you used T/A when trading the news? Hope you understand my question. Please let me know. Thanks
Do you place the line at the close price of the 1st candle? I backed test it and I see what you were saying using the GBP/USD but I checked the EUR/USD and for that pair the 1st candle at 8:15 opened at 1.3132 & closed at 1.3112 (20 pips) and the candle 2nd that at 8:40 opened at 1.3132 and closed at 1.3128 and the 3rd candle at 8:45 opened at 1.1327 and closed at 1.311. If you were using that pair which price would you have entried the trade. Also, What’s a bit confused was that I thought that these 2 pairs (GBP/USD & EUR/USD) most times move in the same directions - do you used this strategy for the GBP/USD only? Thanks
Many traders now are worried about NFP because the movement is not so strong like on the previous time. Yesterday I assumed that Bri/USD should be around 2.000 but…