Non Farm Payroll News Trade
March 7, 2008
The GBPJPY was the currency pair to trade this time around during the Non farm payroll announcement at 8:30am this morning. There was a perfect support and resistance level created within our 15 minute time frame. Although the news was really choppy on other currency pairs, the Sterling Yen was acting really well and may be the pair to trade for future announcements.
Broken down in text format, the support and resistance levels are the thick red lines with news being released at 8:30am, this chart is based off the time zone metatrader uses. With our 10-12 pip buffer we entered long around 206.20 and only suffered a minor pullback before we launched for a fairly easy 100 pips. If you hung on for some retracement you could have had close to 185 pips on this breakout news trade.
sawani says...
March 11, 2008 at 2:45 pm
Since u placed a support and resistance point on the chart,what importance has it on your trading with the NFP?
I really dont understand the NFP trade even though i have an idea of it.
Can u help?
sawani says...
March 11, 2008 at 3:06 pm
please can someone help me out?
Rich says...
March 13, 2008 at 8:29 pm
I’ve always used support and resistance levels at news time, so I don’t get eaten alive at by the whip saw.
This is more or less a 15 minute break out after things settle down after the news is released and big money decides which direction to take it.
This is just one strategy I use at news time.