Category Archives: Forex Trading Articles

In this article we will give you a set of instructions for how to profitably trade currencies after the Non Farm Payroll NFP news announcement with specific charts, signals and techniques. We will show any forex trader how to enter trades in a window of time after the non farm payroll news announcement to take advantage of the volatility.

Most forex traders believe and/or are told that you should not trade non farm payroll NFP news. This is not true at all, this article will detail and show traders how to profitably trade non farm payroll, after the news comes out,  and give you a time line of how and when to enter trades and under what conditions.

What is Non Farm Payroll

Non farm payroll news NFP is reported each month by the US Bureau of Labor Statistics, almost always on the first Friday of the month. The news announcement gives out the number of paid US workers of any business, but excludes government employees, farm employees and non-profit organization employees. Volatility statistics indicate that the non farm payroll news announcement is the most volatile of all scheduled US Dollar economic news drivers. The average movement of currency pairs  is higher than any other news driver, so this is why traders are interested in trading to take advantage of this. Here is how it looks on the forex news calendar:

What to Look for After Non Farm Payroll

The best thing to do is to wait until after the NFP news announcement at least 10-15 minutes for the initial price spikes to settle down. Then start to monitor the forex signals and forex charts we show you in this article and in the example below. In some cases the charts and signals may show you a good trade entry point ahead of the NFP announcement, in this case you must have your stops at break even prices on any open trades ahead of the NFP news announcement, or exit the trade manually ahead of the news.

Any trades you make after non farm payroll NFP news would have the same characteristics as you would have in any good trade. Traders can use a great rules based forex trading a system and mimic those rules after NFP.  The only scenario you must be careful about is if a pair gaps up or moves up suddenly 100 pips or more in the first few minutes after the NFP news announcement, this is when an entry can become much riskier.

Most traders think that NFP pairs to trade include the USD pairs only. Traders expect movement from the USD pairs after non farm payroll, and this is logical since it is a news announcement related to the US economy. The example below shows that you can look for trades on any USD pair, however with the Forexearlywarning trading system you can look for trades on any of the 28 pairs we follow in the eight major currency groups.

So this is yet another myth we are breaking about NFP pairs to trade after the NFP news comes out. In the example below the US Dollar (USD) was weak and the Japanese Yen (JPY) has some strength, so the USD/JPY pair moved strong after the NFP news. Using the same logic, NFP pairs to trade would include any one of 28 pairs after NFP, even non USD pairs. All 28 combinations of the USD, CAD, EUR, GBP, CHF, JPY, AUD or NZD are possible pairs to trade after NFP.

Traders sometime look at the NFP forex predictions and results to try to trade from this information, we do not think that this is the correct approach. Just wait for the news to come out, then wait for the price spikes to settle down. At that point you should trust your charts and signals presented in this article, because they are highly logical and work well in almost every situation. Demo trading NFP will prove your charts and signals work.

Example Post NFP Forex Trade

On June 3, 2016, here is how trading unfolded. After the NFP news announcement, about 15-20 minutes later,  the 107.80 support area was broken on the USD/JPY. This pair continued down to an intra-day low of 106.60, so 120 pips was possible. This pair closed the day at 106.62. This pair was getting close to support levels on the H4 time frame, but in many cases we have seen on trending pairs, post NFP movements can be used to enter strong trends with considerable additional pip potential. See the images below of the USD/JPY post NFP forex signals, a sell signal and also the NFP forex chart showing the amount of movement and breakout points.

The indicators you see above include The Forex Heatmap® forex heatmap, which gives live buy and sell signals for 28 pairs in real time, even after strong forex news drivers like NFP. The chart setup you see is our forex trend indicators, which are some very simple exponential moving averages, combined with support and resistance levels. The heatmap is indicating clear USD weakness in real time and the trend indicators are showing the trend and support and resistance levels.

The USD/JPY sell was not the only trade available after NFP. The EUR/USD  also gave a buy signal after NFP, it also broke out and into a trend in the D1 time frame. This also served as an entry point into a trend with additional upside potential. So the EUR/USD moved up on the same USD weakness and this pair is in an uptrend that should continue much higher on a larger time frame, based on support and resistance levels analysis. So you could have also caught a buy entry on this pair as well while maintaining significant pip potential going forward. Another great trading opportunity after NFP on the same day.

After selling the USD/JPY we would advise scaling out lots, or closing out half of your lots on that sell position. Then let the additional lots ride the trend. Similarly on the EUR/USD buy position, you could scale out profitable lots, then ride the new D1 time frame uptrend higher with a break even stop in place.

Concusions about Non Farm Payroll NFP forex trading – It is certainly possible to trade the non farm payroll news, just after the NFP news announcement, and this type of trading is certainly possible for any one of 28 pairs, not just the USD pairs. You just need the right trading system that is flexible enough to give you accurate entry signals with much better risk management, under different market conditions. This article gives exact instructions on how to trade non farm payroll profitably, after the news announcement, and also shows you the trend and entry indicators used.

If anyone tells you not to trade non farm payroll they are simply mistaken, or the trading system they are using is inadequate or not flexible enough for all market conditions. These same trading techniques and real time indicators also work after all of the volatile news drivers on the world economic calendar across 8 different currencies we track daily.