NFP trading strategy & key levels


1 April, AtoZForex, Amsterdam - Trading NFP data can be overwhelming, thus traders often search for a good NFP trading strategy to catch a piece of the opportunity. Yagub Rahimov presents you three!

We look into trading strategies in addition to market outlook for EURUSD, USDJPY, DAX and much more which can be seen in details in the video recording below.

Three NFP strategies

Yagub uses much of a conservative approach when it comes to the NFP trading. In the first part of his NFP trading strategy he focusses on Fibonacci to define entry levels or exit levels. As an example Yagub is expecting a EURUSD Sell Limit order to be trigger at 1.1575 level for the day.

Second strategy he uses is built on 1 minute time frame and is only applicable after minimum of 20 minutes from the NFP announcement. The strategy involves Fibonacci and 20 Simple Moving averages and is called M1 News trading Strategy.

M1 News trading Strategy

M1 News trading Strategy is straight forward check-box type trading strategy. You need to follow the below requirements in order to trade this NFP trading strategy:

Place 20 SMA applied to median on your chart.

Give market 20 minutes to discount the News

Within this period market must move minimum of 70 pips

The strategy is not valid if the volatility is below 70 pips

Look for the candle to close below/above the 20 SMA on m1

In a bullish immediate reaction you will look for sell opportunity!

Sell at the close of the first minutely candle closing below the 20 SMA

Place Fibonacci connecting the highest high and the lowest low of the last 60 minutes.

Target 61.8% as your take profit and have SL at the highest high (100% Fibonacci retracement zone).

Place another Sell limit order at 110% Custom FIbonacci retracement zone if the market does not reach to 38.2% Fibonacci retracement zone

Once again place your Take Profit at 61.8% Fibonacci retracement zone and use 35 pips SL

Crowd Trading insights strategy

If you are an impatient trader and want to trade the adrenaline of the market right during the NFP figures, you should look into crowdtrading insights. If you see that 75% and above of the market participants are shorting USD right during the NFP announcement, then you should follow the crowd for 9 minutes, until the sentiment shifts among the market participants.

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