How I like NFP day, it when volatility is on a fast pace move. IT is also a day where you must lower your risk position to avoid an instant loss. It’s been a while I have not post any trade. That because I had a new better journal online provided by my fan. Most trade signal now I post them on a special access room for members to trade live. Details joining are on the menu under Knowledge base , where it says ‘ Group Traders ‘ .
The group is synergistic on training one another, some bring ideas to test new strategy, or system improvement. Some bring along their experience into the group.
BUt Today, I am just going to brief on what I did before and after NFP releases.
First thing first is establishing ‘ Where we are ‘ ? in the bigger frame.
Clearly , we are in a big range but down trend on the smaller time frame ( daily ). The demand below current price is not fresh. Therefore there is a possibility of a further drop towards 1.2750 or lower towards 1.2400 in coming weeks or month.
Then just 2 min before the NFP I switch my 1 minute chart to see any fresh supply before the news release. Now From here I can see clues whether I am seeing a demand or supply. The moment I see a supply, it tells me that its going to be a good NFP and hence the banks or instittutional traders are selling earlier printing an orderflow sell ( supply level ).
So I put a pending sell at 1.2989 immediately in the midst of its volatility. The price triggered filling up my order. Now its a NFP news, So I reduce my position size to 5 lot only.
ANd as soon as the news came out it, it went up briefly just to fill in the Unfilled order and straight down it went after that in a minute.
I am now going to leave the trade ride towards 1.2750. The SL is now +16 pip below its entry.
Note: FOr members, I put up the trade signal on this Pair in the Master Community Trading pit.