Trading Non Farm Payroll
April 01, 2016 -- The most interesting trading day of the month. The "Non Farm Payroll" (Most traders love to trade on this event day because market is moving extremely fast.)
As usual, our day will start from 7pm.
From the above chart, we can see that the current trend is up (price is above purple and pink), we have a buy signal appeared before 7pm at TY-Map zone. We must take this into consideration before placing a trade, since this signal has not reached its profit or stop loss.
What we can do is, place a limit order at the original entry price of the signal bar if the price were to retrace and get us in.
The price retrace back to the entry level at around 7:05pm to get us in the game.
Price traded to a high of 1.1462, which is also the daily PAPLine-R3, traders now should get out of the initial buy position with a 25 tics profit and turn short at the Shooting star at PAPLine-R3. Time now is 8:25pm, 5 mins before "NFP" release.
Price flushed 3 levels down, traders who have not gotten in before data are on "standby mode", waiting patiently for the right opportunity to ACT!
Price traded to PAPLine-R3 again after the initial knee jerk reaction, it then formed an autumn sell signal. This is also a "Double Top" formation.
When a pattern formed at PAPLines, the probability are higher.
Movement are kept well within our normal 7pm to 10pm working hours.
Cheers & enjoy trading.
Have a nice weekend.