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The Non Farm Payroll is the most significant data in the US. usually published the first Friday of each month. at 8:30 am EST. it is a major economic indicator that measures the employment situation on the USA. A strong non farm payroll number means a solid. growing and abundant economy. On the other side. a weak number is synonym of slowing economy. It is always compared with the previous month data (added or losing jobs except the farm industry ) between +10.000 et +250.000. The FOMC based their monetary policies decisions on the results of NFP Reports. In the Forex market. the NFP is a great volatility maker. not only in forex markets but also in stocks and bonds. (see Non-farm payroll dates here )
In this article. we will project the lights on 2 trading NFP strategies. that works and provide best results .
The first one on the day of reports using 5 minutes daily chart and the Second one at the end of monday (next NFP) using the daily chart .
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. this bar becomes our valid Bar. then you should place a sell stop 15 Pips above the high of this bar and 15 Pips below the low oh this bar. the trade must be executed the same day. Use always the Parabolic SAR or MACD to predict direction moves .
The figures below shows how it works :
The beauty of this strategy is that you have always on the other side a sell stop or buy stop. even if the price take the other side of the trade. you can close the position with the use of PSAR and MACD. and the other trade will be executed. This strategy gives best results in trending markets, and this is the case in NFP Release .
2 – End of Monday (following the NFP) Trading Strategy :
The Rules :
At the end of monday following the NFP. you take a monday high by looking at the daily chart. and Place a Buy Stop (15 Pips ) above and Sell Stop order below the monday low (15 Pips ) on tuesday US opening session. The trend takes usually for a week. This position must
be closed at the end of the week on Friday .
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