Today we had the most watched release in the forex world - the Non Farm Payroll. Instead of straddling or trying to get in just after 8:30 I decided to wait for the retracement and get in at the right moment. (see chart). From my experience of trading the NFP, the EUR/USD becomes very technically driven after the release. Major support and resistance levels define its direction and with a good technical strategy trading NFP can become quite profitable.
Your thoughts are welcome,
Well if you bought it down there congrates, I waited until I was sure that wasnt a reversal.
How did you determine to get in at that point? For all I know, it could've kept dropping.... I had a straddle, it shot up triggering my long, and then shot right down to trigger my short. After that happen, it shot right up, how do you avoid this false breakout without getting killed?
best way is watch on a 5min chart and let the first cnadle close then try to determine support and resistance.
I have been doing a straddle on this each month, but I have been placing the straddle at least 15 pip +/- the price , with 20 seconds to go. The other problem is my broker widened the spread to about 20 pips on the Eur/$ for the first couple minutes.
Next month I am just going to wait it out and when I see the spread start to get back to normal then place a 7 pip +/- spread. I have seen it retrace approx 50-60% after 2 min. the last couple releases. My issue is that once I see a profit I have been closing it out. Usually before the next 5 min candle forms. I need to start setting a SL and use a Trail Stop it to let it run for a while.
how long do you have to wait after the NFP news release?
15m? after the sentiments settles down?
yeah 5 min candle is very important, that we can know how strength is the direction.
not getting stuck on when to enter -15 min,20min, 30 min but on which strength