The unemployment rate is another indicator included in the data release. In the currency markets, the Non-farm payrolls data is one of the most awaited economic news items.

The US Bureau of Labour Statistics releases it on the first Friday of each month at 8:30 a.m. Eastern time.

The data release includes more than simply the NFP (which is the change in the number of employees in the country, excluding agricultural, government, private, and non-profit employees).

As one of the most anticipated economic news events of the month, Integrated Binary Options Services mostly focus on currency pairs (particularly those involving the US Dollar) and generally see large price fluctuations in the minutes and hours following the release of the data. This presents an excellent opportunity for our traders with a strong plan to profit from the volatility.

The Following Is Our Step-by-step Strategy For Trading Nfp Reports:

We usually trade the EUR/USD after the NFP report. The EUR/USD pair is one of the most commonly traded currency pairs in the world. As a result, it usually has the smallest spread and the most price movement for trading. There is minimal need to trade another currency pair today during the NFP report.

We close all previous day trading positions at least ten minutes before the data is due to be issued at 8:30 a.m. ET. For this approach, we do not take positions prior to the announcement; rather, we wait until the NFP number is revealed before taking any action. When this happens, the price will experience a significant surge or fall that will normally last a few minutes.(sometimes more). We do nothing throughout that initial motion. We can only wait. We utilise a 1-minute EUR/USD chart for this technique.

Our initial move determines the first trading direction; shortly after 8:30 a.m. ET, the price will rise or fall fast, often by at least 30 pips or more in a matter of minutes. The greater the initial movement, the better for day trading. The first move tells us whether we should go long or short in our first transaction. If the price rises more than 30 pips higher, we will want to go long, but only if and when a suitable trade setup presents itself. Which will be covered shortly.

If the price falls by more than 30 pips in the few minutes following the 8:30AM ET release, we will look to go short for our initial trade. If and when a trade setup occurs.

Again, the initial rise or decrease after 8:30AM indicates the direction in which we will trade. The following step is to wait for a trade setup. A trade setup is a series of events that must occur in order for us to enter a trade. Because there is typically a lot of volatility surrounding the news, we will look at a few different variations of the setup, because no two days are ever the same.

What We Are Waiting For Is As Follows:

After the first move of 30 pips or greater, there must be a pullback of at least 5 one-minute price bars. This means that if the original move was up, we want to see the price drop off the peak of the initial move and stay below it for at least 5 bars (they don't all have to be down bars). The pullback should ensure significant negative movement, but it should not fall below the 8:30AM price, where the initial rise started. If the initial move was down, we want to see the price bounce off the low of the original move and stay above that low for at least 5 bars. The pullback should make significant upward momentum, but it should not rise beyond the 8:30AM price, when the initial downward move began.

Waiting for at least a 5-price-bar pullback allows you to draw a trendline across the price bar's height (if the first move was up) or across the price bar's lows (if the initial move was down).(If the first move was downward). Please keep in mind that we are drawing the trendline on the price bars that comprise the pullback.

If the first move was upward, purchase when the bid price crosses over the trendline. Enter a short trade when the bid price falls below the trendline if the initial move was downward. This is the most basic version of the method and is appropriate in the vast majority of cases. Unfortunately, because it is so broad, the pullback may not always give a suitable trendline for signalling an entrance. The alternative entry suggested in the following section may be useful in such instances.

If a long trade is taken, set a stop loss one pip below the most recent low that just established previous to entry.

If you decide to go short, set your stop loss one pip (plus the value of your spread) above the most recent high that established before you entered the trade.

After the initial move, if the price pulls back more than half the distance of the initial advance (before breaching the pull back trend line and signalling an entry), this is an alternative technique. Once the price has dropped more than 50% (using a Fibonacci retracement tool), wait for at least two price bars to consolidate. This signifies that the price will remain horizontal for at least two minutes. Once the second bar has finished and the third bar is beginning to form, draw a line along the high and low prices of those two price bars.

If the initial move was upward, purchase if the bid price climbs above the consolidation high.Enter a short trade if the bid price falls below the low of the consolidation if the original move was down.

If a long trade is triggered, set a stop loss one pip below the consolidation's bottom.

If a short trade is triggered, place a stop loss one pip (plus the value of your spread) above the high of the consolidation.