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We Love NonFarm Payroll Trades

Taking trades soon after the non farm payroll report comes out can be quite exciting. We’ve been telling you for months, that taking trades right at news time can be very dangerous. This is another post that talks about it. This is why we wait for at least a half an hour before making our next trade, whether it’s Forex or binary. To take a trade around the nonfarm payroll report can cause you a lot of money and stress. It’s best to wait for the trade set up to come to you and allow you to make the best decision possible before entering. A lot of times traders try to jump on the markets and end up losing their shirt. Sometimes, it’s best to even stay away from the market for more than an hour. This will allow even a better set up to come to you possibly.

The trade we took today occurred one hour after the news was released. We were looking at the charts at 8:30 this morning and saw the huge drop-off based on the news out of the US. Price jumped on a 1 minute candle nearly 60 pips and continued to fall over the next half hour. As price came down to support level two, it formed a couple of wicks. These wicks became a new support area and price started to climb. As price was climbing gradually, it was moving into a couple of resistance areas. This is where we entered our put option at 24 option which can be viewed here. Prices fell off soon after entry, giving us a nice five pip winner to the south side. We decided to stick with the trend today because the euro has been so weak. Based on the news and price action we’ve seen, it wouldn’t be surprise to see the euro dropped to 1.2700 by next week.

The image below shows the trade of the day as well as the news event. This is a 1 minute chart. You can see how price dropped off quite quickly. Price then moved back up on a retracement before breaking the lows of the initial news event. This is where you would enter a trade on a news trade. Look for deeper movements to the direction of the original news event. Price took about 30 minutes before finishing down another 60 pips. This let Forex news traders make a lot of money on a nonfarm payroll trade. Catching the secondary move, in the news event can be quite powerful. It allows you to not only get in the direction of the news, but will also allow you to stick with the trend and possibly give you a huge trade over the course of the next week.
NFP Nice Move and trade
Our trade on the binary options market was based on a retracement back into the news. Price gradually climbed up and you can see the green arrow where we entered our put option. Price went against us by a couple of pips before moving in our direction and didn’t look back. This led us to a great trade on this Friday. We will continue to trade nonfarm payroll every month. As traders, you need to have things working for you when entering a trade. This mean strong catalysts. In this case, we had several things and one the major items was sticking with the trend. Another trend trade can be seen here. It’s phenomenal how much easier it is to trade when you are with the trend. Continue to take solid setups and we’ll be back next week for some new trades. Until then, check out what we have going on at Binary Option Trading.

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