Profiting from the U.S Non Farm Payroll news

Learn to Trade like the Banks

Trading the news is undoubtedly one of the difficult condiments of trading. Traders are unsure about the direction of currencies when these volatile news are released. Therefore, they resort to gambling. They take a trade and pray that the news announcement comes out in there favour. Gambling! In fact, some pro traders advocate that traders should steer clear off the market, during these news. Today, we are going to demystify the art of profiting from these highly volatile news.

Non Farm payroll data is the most volatile of all economic news. Released on the first Friday of every month by the US Bureau of Labour Statistics. It basically measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity. The masses, investors, and government agencies are interested in this statistics because it has a way of ‘telling’ the overall health situation of an economy.

Economists forecast these data before their release to the general public. It is called ‘Forecast’. There is ‘Previous’, which is the last months number. Then we have the ‘Actual’, which is the job data for the month. If the Actual data released is much greater or lower than the ‘Forecast’, there is panic in the market. Traders move to trade according to the news released. Sometimes, the servers of these brokers jam. Other times, the trend is over before you can even find the ‘New order’ button. Let us see how we can stay on the right side, even before the news release.

The trading system we teach here on is a system used by Hedge Funds, Banks etc. It is called ‘Level Trading‘. When levels (tides) are spotted, prices tend to obey them. It is always difficult for price to break them – not even Economic news! When a volatile data is released such as non-farm payroll and the data is against the tide of price, there isn’t much movement in the market. But, when the news is in favour of the tide, prices move generously. That was the case on Friday, 1st of April, 2016.

Take a look at the charts below

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Our service easily made over 500 pips.

How did we do it?
We located a level (Resistance) at 162.49 and 1.4396 for GBPJPY and GPBUSD respectively. Like we said above, the tide was down south. It will be suicidal to swim against the tide. Even if news is released against the tide, prices will not move much. Like expected news will most likely come out in favour of the tide.

We were already in the market at those levels. The news came out in favour of us and we profitable over 500 pips in both currency pairs. 🙂

In conclusion, always stay and swim with the tide. Against the tide? you will make loses.

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