The release of the NFP generally occurs on the first Friday of every month at 8:30am EST. This news release creates a favorable environment for active traders in that it provides a near guarantee of a tradable move following the announcement. The NFP report generally affects all major currency pairs, but one of the favorites among traders is the
GBP/USD. Because the forex market is open 24 hours a day, all traders have the capability to trade the news event.
The strategy can be traded off of five- or 15-minute charts. For the rules and examples, a 15-minute chart will be used, although the same rules apply to a five-minute chart. Signals may appear on different time frames, so stick with one or the other.Nothing is done during the first bar after the NFP report (8:30-8:45am in the case of the 15-minute chart).
The bar created at 8:30-8:45 will be wide ranging. We wait for an inside bar to occur after this initial bar (it does not need to be the very next bar). In other words, we are waiting for the most recent bar’s range to be completely inside the previous bar’s range. This inside bar’s high and low rate sets up our potential trade triggers. When a subsequent bar closes above or below the inside bar, we take a trade in the direction of the breakout. We can also enter a trade as soon as the bar moves past the high or low without waiting for the bar to close.
Speed is very important for orders opening for this strategy. I use FastOrder Software
This tool was designed for traders for whom speed is very important for orders opening. For example, to trade on economic news or for forex scalping. FastOrder Tool allows you to open order in one click on several trading MetatTrader 4 accounts.