…..In this post, I am going to share a Forex Trading Strategy which takes advantage of these 2 important elements happening in the market :

1)  Price ” Bouncing ” Off  A ( Down ) Trend - Line

2)  And Then….. Relying on a ” Bullish REJECTION Zone “ To Acheive A  High Probability ( Low Risk…HIGH Rewards ) Entry..

Read on below as I share this profitable strategy in a step-by-step manner for You !

For a ranging market… ( or the so called Sideway market )…..

We would use a ” Horizontal Line ” to mark out the the important Resistance / Support levels….

Well…that is for a Ranging Market though……BUT how about a ” Trending ” market.. ?

Hmmm….You still can use a Horizontal Line for a Trending market somehow…..

HOWEVER…..by doing that….

….. You would most likely be getting many FALSE signals from the market as the resistance points would be shifting higher & higher…( for an up-trend )…

…as well as seeing Support points ….shifting lower & lower…( for a down-trend )..

So by using a Horizontal Line for a Trending market….it is NOT beneficial at all to help with Your market analysis..

On the other hand…..if You know how to use a Trend-Line ( and NOT a Horizontal Line ) for a Trending Market..

It could help You Pin-Point ” High Probability Turning Point “ to get into the Trend again…..in order to achieve a Low Risk & HIGH Rewards trade.

Which also means You can ” Project A Future Turning Point ” way in advance when You see the Price coming close to that Trend-Line ( once ) again….

( which I would be showing You on this technique below later )

In any trading game, we are ONLY interested with ” Predicting Future Market Movements “…

Because only by accurately doing so……we can then nail those valuable Pips & make Profits out of our trades……( again & again ! )

Agree on this too ?

BUT….

If You’re still unsure on - How to fully  make good use of such trend-line strategy yet ….

…OR simply NOT confident about it at all ( though You have been reading up about it )…

Then after reading this entire strategy today……You will truly benefit tremendously from it.

This is an exact forex strategy that I use to nail 80 Pips Profits on the USDCAD ….( while ONLY risking half the risk at 40 pips )

Ask any trader is this a good risk/reward ratio….

I am sure they would ” agree ” too….* smile *

Alright…let’s get started now ya.

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A Forex Strategy Combining ( Down ) TRend-Line …..& ” Bullish Rejection Zone ”

( Indeed a Very Profitable strategy with minimum risk….
BUT HIGH Rewards !  …And You can use on Any Pairs too !)
————————————————————————————————————–

The best way to understand & master a particular trading strategy is to learn it through Step-By-Step explanations……..right ?

Not really though !

I personally think that it is more beneficial to learn it in such a way that ..” You’re also SEEING…….what I am seeing in the market “…

…And more importantly - ” Before the actual Set-up is complete formed ! “

This is essential so that once the ” Proven Set-Up ” is completed in the market…You’re all ready to go in then..

If I just show You the ” Completed ” Set-Up…..instead of the ” before forming ” situation..

Then when You try to use this strategy in the forex market Yourself..

It could pose a challenge to You then…..as You’re NOT sure what to ” expect ” …

And so….. Your inconsistent confident level would be a major hindrance while You’re trying to mater this strategy ….

(…and would definitely prevent You from reaping the full benefits from this strategy.)

So just like all the previous forex strategies I shared with You guys..

This time round I am going to show You in such a manner :

=> From the ” before forming ” to …” ENtry “….to ” Taking-Profit “ & Winning the Trade at last !

Cool ?

Here we go….

—————————————————————————————————————–

This is the ” Exact Situation ” I saw on the USDCAD ( 4 hourly ) for a start :

—————————————————————————————————————–

Upon opening up the USDCAD ( 4 hourly ) chart, I saw the Price approaching the ” Top Limit ” of the Down Trend-Line once again…

When this happens…

I know there is a potentially good ” SHORTING Opportunity ” coming soon for this pair..

Like This :

So upon seeing this ” Price Approaching Trend-Line ” situation..

What should You do next in order to…….. prepare Yourself to look for some good ” hints ” from the market to confirm Your ” SHORTING ” bias then ?

Simple actually…

Just drop down to the ” Next Smaller ” time frame - Which is the 1 hourly for this case..

And then look for a ” Bullish Price Rejection Zone / Set-up “…

There are many such ” Rejection Zone / Set-Up ” You can take advantage of to confirm Your bias to Short / Sell actually..

But for the purpose of this strategy, I will just reveal the exact ” Rejection Zone ” that I use to confirm my bias.

I could not share ALL the ” rejection zone / set-ups ” merely with this short article today..

Which I think You can understand on that too …

In the days to come…..

…. I will share them one by one ( and explained them in the form of ” simple to understand strategy ” for You guys )  as I come across in my own trading …

( This is definitely one major benefit of being my valuable subscriber….! * smile * )

Alright….let’s continue with this strategy for now..

———————————————————————————————————————

So What Kind Of ” Rejection Zone / Set-Up ” Do I Look For….?

….Once Dropped Down To The 1 Hourly Time-Frame ?

——————————————————————————————————————–

Upon switching to the next smaller time frame ( which is the 1 hourly )….

…This is what I saw :

Remember this…

The reason why You are dropping down the 1 hourly time-frame is because You are ” looking for good hints ” to support Your SHORTING Bias…

Again………You are doing this due to the fact that the ” Price Is Approaching The ( Down ) Trend-Line ” on the 4 hourly time-frame …once again..

So without a ” Good Hint “…..

And Without  ” Considering The Risk Involved ” for this position…

Then You are NOT ready to enter the market to SHORT….

The key to be successful….AND  ” making nice consistent Profits ” from forex trading is to secure as many winning trades as possible..

That’s a logical and proven fact…

I am a stronge believer of Price Action Strategies…

And I rely the Price Actions in the market to confirm my bias and then guide me into a certain position I wish to trade..

Why the need to do that ?…….

Are You wondering on that too ?

Nothing complicated actually….but as long as one can extract as ” many hints / Confluence ” from the Price Actions in the market …

The success rate would be ( very ) high end of the day…

What matters most is ” WHAT ” should You look for  that is paramount to Your success….!!

So from this moment onwards……

…I will be explaining on ” WHAT ” am I looking ( or waiting ) for before I finally decide to commit into this postion to SHORT the USDCAD…

Let me show You the illustration again as I explain on some important details here to help You understand :

As You can see from the above illustration…

There is ” still some distance away the price is from the ( blue ) Trend-Line top limit “…

Moreover………there are also some ” Pin-Bars ” on that series of candlesticks reflecting
the price actions in the market .

What these current Pinbars and Price Actions mean is that  - There is a ” high likelihood ” that the price will CLIMB further..

Hence, I am reluctant to SHORT at the current Price level…..

…But choose to WAIT instead for ” Better Price & Desirable Price Actions ” in the market..

…..So did my ” Patience ” pays off ?

Yes….indeed !

The price actually climbs all the way to the level where the previous top is..

And then FAIL and ” Get Rejected ” there…..!!

( Proven by a few Bearish Candlesticks reflecting a high-probability of REJECTION at this level )

Here’s an illustration to show You :

As shown in the illustrations above..

The price climbs all the way and ” stalled ” upon touching the Trend-Line nicely…

But that is not always the case though…

Sometimes the price would pierce through……and then plunge down again…

Sometimes it would not even touch the trend-line ….and the next thing is that it PLUNGED down fiercely …

So the key here is to gather as ” many such hints ” from the market as possible..

That is a much better & ” Profitable ” way to trade the forex market…* smile *

So upon seeing that ” Nice REJECTION ” zone…

And knowing that the ” Risk ( Stop Loss ) ” needed is ONLY 40 Pips..

I know this is the ” set-up ” I wanted..

NOTE : At the same time, I already knew that the POTENTIAL REWARDS ( Pips ) I can aim for with such set-up in the market.  ( which I would be showing You later below )

The Potential Rewards ( after calculation ) is about 150 Pips for this set-up…

BUT….I am just aiming for a conservative 80 Pips for this trade…..( my style ! * smile * )

Good enough as the risk involve is ONLY 40 PIps..

Hence giving me a Reward/ Risk ratio of 2 : 1….

TWICE that is !!

Before I get into the trade summary…

Let me show You ( with illustrations ) on how I calculated the Potential Rewards You can aim for ( that’s how I derive the 80 Pips Take-Profit Target ) :

This Step on ” Calculating Potential Rewards ” was already done so BEFORE I get into my SHORT ENTRY..

It is part of the trading ( or battle ) plan so that the Reward / Risk ratio could be determined way before hand…

And if it is worth it….I will ” wait ” and continue monitor this trade closely as the set-ups unfold in the market…

So as can be seen from the illustrations above…

The Potential Rewards is calculated to be 150 Pips..

And I am just aiming for 80 Pips out of these 150…

Is it consider ” realistic ” here ?

…..VERY ! * smile *

As I intend to trade this position for short-term ( intra-day ) profits..

Hence 80 Pips is already more than enough for me.

Well…perhaps some of You guys might be wondering about this question too :

” Hey Aaron….why don’t You aim for more pips in the range of 150 - 200 pips ?….

Since this is a Down-Trendline…..Why don’t ride the Trend further for more Pip ? “

My Answer for You guys :

Yes…..aiming for more profits in the range of 150 - 200 pips is definitely good….

Especially when this is a ( Down ) Trend-Line….which carries a high probability of Strong Down-Trend..

HOWEVER…..

The reason why I am just aiming for a Short Trem ( Intra-day ) profits of just 80 Pips is solely back-up by some strong ” logical facts ” here though….here it is  :

…See on the illustrations above, You can also see a really STRONG SUPPORT Line for
this USDCAD pair right ?

As long as this Support is NOT broken…..

I will ” respect ” it very much as it is literally NOT wise to presume that it would be broken
for sure…

( One of my winning rule is ” Never Presume ” anything in the market…..remember ? *smile *)

BUT once that Support is BROKEN…

Then YES….I would be aiming for BIGGER Profits in the range of 150 - 200 pips….
OR EVEN MORE !!

Now You know why I am aiming for just 80 Pips for this trade……

Being conservative and respect the support line is essential here.

Trading just 1 standard lot and nailing 80 Pips is already USD$800 profits….

What if You can do it confidently 4 -5 times a month ?

$3,200 - $4,000 just trading 1 standard lot……?

Not bad I am sure…

And if it is a ” High Probability Set-Up & Proven Strategy ” You’re using…

Then it would make the entire trading process very enjoyable too - WITHOUT You having to worry and feeling fearful …which happen to most ..

Right !

——————————————————————–

Here’s the trade details for this position :

——————————————————————–

SHORT Entry : 0.99595

Stop - Loss : 0.99995 ( 40 Pips Risk )

Take - Profit : 0.98795 ( 80 Pips Rewards )

So How Did This Trade Turns Out Eventually ?

Here’s the Answer for You :

This trade intially goes ” slightly ” in my flavor….

But shortly after that…it starts climbing up again and reaching as high as the previous TOP…

Just 10 pips more and it would hit my Stop-Loss for this trade…

( as You can see too above )

Hmmm……Sometimes a small difference of 5 - 10 pips can literally make or break a trade …

Imagine I am not giving any allowance ( extra pips ) for my Stop-Loss…

Then it would got hit and there goes another LOSING trade….
( which could be a WINNING one eventually )…

Hence, whenever I decide on a Stop-Loss , I will make sure I give it an extra 10 - 15 pips.…( especially for such TIGHT Stop-Loss placement )

—————————————————————————————————————————–

….A while back, I have written a forex trading tip on ” Strategic Stop-Loss Placement - In Order To Avoid Getting Hit Unneccessary “ for my fellow readers. If You are still NOT confident about Stop-Loss Placement yet….. ( and have not read on that tip I wrote )…

=> You can still read the entire Stop-Loss Technique here

( ….Please do it AFTER You read through this strategy as it is NOT good to disrupt the FLOW when learning a new forex strategy ! * smile * )
——————————————————————————————————————————

Alright….back to the last stage of the trade progress now..

This SHORTING trade last for slightly more than a day before my Take - Profit target
finally hit….

And if You notice too..

The ” BEARISH ” action only starts after the 3rd Tops.

Which is also known as a ” Triple Tops ” formation in the market…

Note how ” BEARISH ( Long & Full ) ” those candlesticks are after the 3rd Top…

Price actually PLUNGED down aggressively with no break/retracement at all..

What does this shows ?

It shows that there are big ( volume of ) funds pouring into the market to SHORT this pair as well…at that price point.

Where did those BIG Funds coming from ?

Obviously from the major banks, institutions, hedge funds….and combined power of both Professional & Retail traders …..right !

…..Those BIG Players are watching such Trend-Line too !

So it definitely pays to understand & eventually master this forex strategy on Trend-Line trading..

Combining with ” Price Actions in the market ” to seek for HIGH PROBABILIY REJECTION Set-up……

…The Winning % can be really astounding most of the time !  * smile *

And now You know…..

I would consider the above strategy a very simple one in fact..

( But ( very ) Profitable at the same time ….)

The key is to know ” what to look ” for when a price hit a Trend-Line LIMIT - In order to support Your bias to Short/ Buy..

After that…weight the Reward/Risk ratio to see if it is feasible to trade it..

That’s about it.

The beauty of such strategy is that You can use it on almost ANY currency pairs available on Your trading platform..

Why ?

Because it has been proven to work on them !

NO Technical Indicators needed….

NO Complicated Trading Systems needed…

NO Need To Read Tedious Financial Reports / News..

Isn’t it ( really )Simple after all…?  LOL

If You are not confident yet……

Do not give up..

Just learn bit by bit progressively…

Soon You can also get the ” full PICTURE ” and finally ” GET IT ” too..

——————————————————————————————————————————

Here’s the earnings screen-shot with ” Entry, Stop-Loss & Take - Profit ” to share :

( 80 PIps from this trade = $2,435.04 Profits )
—————————————————————————————————————————–

A Profits amount of $2,435 + might not be “  alot ” to some traders…( whom are trading a much bigger lots size than me )

BUT………when these small profits in the range of $2,435+ could be achieved consistently ( again and again )…..3….4…..5….or even 10 times in a month…

That would already amount to more than $10,000 - $20,000 profits from forex trading…

That also explains why I always advise those traders starting out …… to start small and build up their account size progressively by winning ” Realistically Small Profits ” but consistently…….

( Training Yourself to aim for 50 - 100 pips is a good target for short-term trading as it is within the daily average range for most currency pairs  )

This would enhance Your trading skills and confidence in no time….. as You guys trade more and more in the LIVE market..

The Big ” V -Day ” ( Valentine ) is round the corner as I am done with this winning trade on the USDCAD..

Grabbing a nice Profits of $2,435+ from this trade………

And the BIG ‘ V ” day near…

Definitely this amount would come handy now…..right !

Especially when my wife has already hinted me about that particular ” CHANNEL ” handbag she has been eyeing all these while !!!

Good time to pamper our love ones on this special occasion…

Am sure You would agree on that too ….* smile *

Making Nice Profits and income from the forex market feels good…

But it would be even ” BETTER ” if we can use the money to make our love ones HAPPY at the same time……..agree too ?

” Smiling with a wide GRIN on my face now…. “….

Alright….so much for this profitable forex strategy on :

“…( Down ) TRend -Line Combining With A Proven Bullish REJECTION Zone “…

If need to….do make sure You read it again and fully understand it ya…

This is to ensure that You would NOT get too confused while trying on a DEMO account after that…

Happy practising and trading in the meantime..

I shall send You more forex trading strategies & tips in the days to come..

Thank You for reading this far too.  * smile *

To Your ( absolute ) FOREX SUCCESS,
- Aaron Tan ( your trading friend )

In this forex post, You will get to learn my exact ” unique ” forex trading strategy for the Non Farm Payroll using simple Price Actions.  ( 105 Pips Profits )

Just like other trading example I shown in my blog, I am also using Price Action to trade the Non Farm Payroll as well…

( A Major News NOT To Be Missed In Forex Trading ! )

In the first NFP forex strategy, I shared a trading technique which take advantage of some ” reversal ” hints in the market after the release of the actual NFP announcement..

It is a combination of using both ” Fundamental + Price Action ” strategy actually…

And it requires trader to ” get in fast and get out fast ” based on the Price Action in the market..

As I am already very familiar with watching the Price Action formed in the market…

I do not pre-set any Stop Loss or Take Profit level for the previous NFP strategy….BUT rather just rely on the current market condition to decide upon..

However……….some of the traders actually wrote in to me requesting that I shared another strategy in which they can ” Pre-Set  a Stop- Loss level ” …..

As well as ride the market for MORE PIPS each time … ( profits )

Wow !…..

Isn’t that BEST OF BOTH WORLD uh…?

Pre-set a Stop Loss at ” Strategic ” level…

AND…..ride the volatile market ( after news released ) for MORE PIPS…

Is there such a forex trading strategy for the NFP then ?

Good news !

There is and I have been trading using this strategy too…… IF I see a good & proven set-up for this technique for trading the monthly NFP…

If You’re also keen on this technique I personally formulated..

Then do continue reading …

————————————————————————————————————————

BUT first……some WARNING for You here first ( grin) :

———————————————————————————————————————–

For most people who have decided to venture into this forex trading business….it is very ” normal ” for him / her to try to trade the Non Farm Payroll…( at least for once )

Why so ?

Because everywhere You go….be it forex forums or just some forex books from the bookstore, You will definitely see some forex strategies talking about ” trading ” the Non Farm Payroll..

Well…..sad to say this though…

For majority of the people who traded this major news which happen on the first Friday of the month - They Would ” Lose Money ” 9  out of 10 times !

And the LOSSES can be really HUGE for those who purely treat this super volatile news announcement as an ” GAMBLING TOOL “…..

They do not practice money management at all….and simply dump in a BIG portions of their capital thinking that it is ” Easy ” to nail those pips after all…

( just because they have been MISLEADED to thinking that anyone can make A LOT of profits in a really Short period out of it ! )

That is 50% true though…

BUT…..this is a ” Double Edge Sword ” in fact..

You can Win a lot of money in a short period during a NFP announcement….

HOWEVER….You can also LOSE A LOT of money in a very short period too…

If You have had some bad experience with trading the NFP….then am sure You would understand what I meant by the above sentence…..

( ….however if You have not encounter any bad experience yet…..then I hope You do not have to at all ! )

On the other hand….there are some people who also walked away happily making maybe say 10 - 20 pips from trading the NFP..

Yes….they did not lose after all..

BUT…..what about the STOP LOSS ?

Are they going to set it at 10 - 20 pips as well ?

OR….simply don’t care and DON”T set any Stop Loss at all BUT just hoping that ” everything ” would turn out fine ?

Hmmm….that is definitely NOT the way to trade such volatile news I dare say..

Any trader who just ignore this fact and continue to trade in the ” WRONG ” way would definitely find it very hard for them to survive trading the NFP announcement in the long run…

And this is the reason why so many people find it very frustrating about… ( including some of my fellow readers who stumbled upon my forex blog )

That is why recently a lot of my readers wrote in to me asking about my own forex strategy for trading the Non Farm Payroll…

And You might have guessed it too..

Most of these readers are really ” frustrated ” with trading the NFP now…

Because they confessed that they are always trading on a very ” fearful ” mindset and they really want a more ” reliable and proven ” way to conquer this Non Farm Payroll…

Since they are feeling fearful and not confidence about trading the Non Farm Payroll..

Then I ask them this one question too :

“….Why don’t You guys DON”T trade the NFP at all ?

….Since You guys are not confident about Your trading strategy for this super volatile major news announcement ? “

Know what most of them answer me for this question ?

————————————————————————————————————————-

Most Of Their Answer ( carries this same meaning ) :

They know that Non Farm Payroll is very volatile…..which means the market would MOVE MASSIVELY…

When that happens…there are MASSIVE PIPS for them to grab too…..

That is why they are always ” tempted ” to trade this NFP.

————————————————————————————————————————

I have already wrote a post sharing my own forex trading strategy for the NFP in this blog to share with fellow readers previously..

But since I have been getting quite a number of emails ( about 50+ ) asking for more of my strategy that they can model to trade the NFP..

I decide to write another post sharing another strategy for the NFP this time here.

( Which show You how to pre-set a Stop Loss level….and grab MORE PIPS ! )

For each NFP, I would try to trade it definitely..

Unless I am attending to other important activities or events…then maybe would give it a miss..

( Or sometimes if the market condition or set-up is not ” good enough ” for me …I would step aside and don’t want to take unnecessary risk at all…)

For this following NFP strategy, the set-up is a rather ” common ” one which always present during the announcement..

And if You are also trading using Price Action strategies too…

Then nailing good pips from such volatile market condition from the NFP announcement would be ” NO Sweat ” for You then….

Here’s an overview of where I choose to ” Enter & Exit ” for a good 105 pips total ..

And using my so called ” Partial Lots Exit ” technique..

After analyzing the market using Price Actions strategy…

I ” Shorted / Sell “  4 Lots at the Price 1.36890  ( which is the closing price of the bearish candle )

First 2 Lots exited after Take Profit Target of 45 Pips hit….

Last 2 Lots exited after Take Profit Target of 60 Pips hit..

A total of  105 Pips grabbed for this trade using this forex strategy.

( And the beauty of the set-up I look for would most of the time give me a very ” Good Risk/Reward ” ratio…..which is very important for long term success ! )

Read more to find out the details for this proven strategy below……as well as for the screen-shot of the earnings proof for this trade.

Alright….here we go now !

————————————————————————————————————————

PS : One more thing which I think You need to know here before we start though…

As I am already ” Very Confident ” with trading mainly using Price Action strategies all these while ( more than 4 years )…..therefore it is  very ” natural ” for me to scan for good set-ups on the chart while trading…

But for the sake of sharing this strategy as ” easy and simple ” to understand as possible for even absolute newbies reading my blog…

I will also include as much details as possible…

So if You already know this basic from reading other forex strategies on my blog….do bear with me for awhile ya….

In fact……..It would be good that You read every single word in this post so You get a ” FULL Picture ” of  this strategy….

As well as my Decision Making Process -  This is worth GOLD !  ( Money can’t buy my brain at least for now…* smile *)

So much for this opening….let’s go into the meat of this forex trading strategy for the NFP now..

To trade the monthly Non Farm Payroll with high accuracy…

It is critical that You at least know the 2 ” important ” numbers namely :

1)   Consensus

2)   Actual

Why so ?

Simply because these numbers would affect the market most of the time….

Especially when it is ” very bad or very good “…

Which is what I called the element of ” Surprise Factor “….

BUT….no matter what’s the actual numbers are…

It is VERY IMPORTANT that You place all the emphasis on the Price Action from the market though…

Confuse with this ?

Don’t worry……read on as I make everything very simple for You to understand below.

——————————————————————————————————————–

Here’s a screen shot of the actual & consensus numbers taken from Action Forex  ( click to enlarge ) :

———————————————————————————————————————

The Consensus is 15k..

But the Actual is -22k…

So technically…this would ” weaken ” the USD.

If You know don’t this yet….

When I am trading the Non-Farm Payroll…I only focus on the EUR/USD pair.

Reason being is that this pair gives me very reliable set-ups according to the fundamental outcome & market’s sentiment..

Am sure You would agree that if what You see on the market are ” most of the time RELIABLE “….

You would be WINNING ” Most ” of the time too….right ? * grin *

OK…..since the USD would be weaken because of the worst actual NFP results ….( -22k instead of 10k )

Then my bias would be an ” Uptrend ” for the time being…

HOWEVER…..

Since this is a different strategy as compared to the previous one where I ” enter and exit fast “….

Of course there are other considerations You need too…..before committing into a position..

So HOW ?

Here are the considerations You must take :

1)  Is this ” Uptrend ” bias ( due to the worst than expected results ) against the MAJOR trend for this pair ?

2)  When is the ” best time ” to get into a trade so as to use minimum stop loss YET it could be placed at a STRATEGIC Price Location….?

Step number 2 is essential as this technique allows You to Pre-Determine a Stop- Loss level ..

Hence….abit of planning is definitely essential !

So upon considering these 2 elements…

We have a problem here though…

Firstly….the major trend has been a ” DOWNTREND ” previously for the EUR/USD….

….and it is against our NFP bias for an Uptrend !

( due actual NFP results & supposedly weaker USD )..

Here’s a screen shot to help You understand better :

From the above illustration…

You can also see that it has been a very Strong Down-Trend ” Prevailing ” for this Eur/Usd pair

So if we intend to Trade Against the Major Trend…..we need to be very skeptical about it though….

So how now ?

Better not trade against the Major trend…..and just give this NFP a miss ?

Well….like what I mentioned above ( and in other posts as well )….

It is good to trade ONLY if the ” set - up ” we want has shown on the market…

No point trading with a guessing mindset or just try our luck…….because most of the time it would only lead to fear, frustration and losing our capital…

Alright……at this point, things get abit ” trickier ” now…

But if You can also read the Price Action from the market like I do…

Then You would know what to look out for…..and how to trade the set-ups with ” confidence ” as well…

Let me show You the strategy on how I nailed 105 pips next..

Right after the announcement of the actual NFP results ( -22k ) at 1330 hour…

The Price actually begin to climb up initially for about 50 pips…..

BUT ” failed ” ultimately forming a Tower  Top ( common Candlesticks Formation ) and PLUNGED big time downwards forming a NEW LOW even…

This shows the SELLERS are somehow ” still dominating ” the market…

So based on this observation, it somehow makes our bias of an UP-Trend…….turning into a DOWN-TREND now…

The key here is to look out for a good and proven ” set-up ” to enter into a SELL trade…

And truly….after a while …this set-up indeed formed in the market and I used it for my ” SELL Entry “..

Here’s an illustration to help You understand more :

Now….referring to the above illustration..

You can also see that the Price started to ” Retrace / Pullback ” after forming a New Low for the session..

The price then ” retrace / pullback ” to a point and FAILED….

Subsequently forming an Inverted Pinbar - Which is a good hint that the Sellers are much Stronger than the Buyers at this stage….

( Also ….if You plot a FIBONACCI on the point it failed…it is also about 50% FIBO level …..which is a good zone to enter for Trend Continuation…)

Upon gathering all these ” hints ” from the market..

I then make my ” SELL Entry ” of 4 Lots for this NFP strategy…

Here’s an illustration for You to understand better :

Now that You know how I analyzed the Price Action in the market to decide on a ” SELL ” trade instead of a BUY…

With this information shared….it would not make my fellow readers happy yet though…

Why  so ?

Because like what I mentioned right at the start of this post..

They wrote in to me asking for a strategy in which they can ” pre-set a Stop - Loss level “…

…as well as ride for good pips during a Non Farm Payroll announcement without feeling ” Uncertain or Stressful ” like what others normally go through….

So next coming up is of course to teach You guys how to decide on a ” strategic ” location to place the Stop Loss..

Wild guessing a stop loss value is definitely NOT GOOD for long term success..

This is due to the fact that a 25 pips stop loss might work for situation A….

BUT….in situation B….You might need 30 pips to survive and allow the trade to breathe freely….

Let me show You how below then..

Here’s the illustration to help You understand better once again :

A ” Strategic ” location to place the Stop Loss is a few pips away from the tip of the Inverted Pinbar…

This is so because the Price has FAILED previously at that level…..

Thus,  if we are right about the direction…..it is very ” less likely ” that the price would breach that level again…

With a 30 Pips Stop Loss..( in this case )

We are going to aim for 2 Profit Targets for this NFP Strategy…

First Profit Target would be 1.5 x our Stop Loss of 30 Pips  ( 45 Pips that is….)

Second Profit Target would be 2 x our Stop Loss of 30 Pips (  60 Pips that is…)

And since I ” Shorted 4 Lots ” ( 2 x 2 separate lots ) into the market …

Then each time I exit would be 2 Lots each…

So does this EXIT Strategy gives You a Good Risk/Reward ratio ?

Of course it does….

( In fact….for all of my forex strategies - Having a Good Risk/Reward ratio is one ” Critical ” element I place a lot of emphasis on and likewise for this NFP strategy )

Do the simple math here and You would agree too…

We are aiming for ” much more ” profits that the stop loss…

So end of the day…..it is indeed giving us a Good Risk/Reward ratio…..simple !

But before You can secure those Pips into Your pocket…

You need to know ” HOW & WHEN ” to exit the FIRST position…

This is very important so as to avoid seeing the profits ( pips ) You successfully nailed previously being given back to the market ” IF ” it reversed…

So how do You do all these to avoid losing all those pips You accumulated then ?

Let me show You this simple yet proven ” EXIT ” strategy next…

I will try to make it simple to understand but no harm reading a few times more if You don’t get it the first time ya…* smile *

Here we go….

After about 23 mins of trading since I shorted 4 Lots at Price 1.36890..

The first Profit Target of 45 pips was hit at Price 1.36430..

So the first position with 2 Lots was ” automatically ” closed with the Pre-set Profit Taking Price..

Since the first half of the trading has been smooth sailing and we have profited 45 pips here…

We still have the 2nd position ( 2 Lots too ) still riding the market..

In order not to lose at all…

We must shift the Stop Loss for this 2nd position to BREAKEVEN now…

This is to protect & truly add advantage to our position…

Even if the market was to reverse…..then at least We Won’t Lose !

Sounds good to You….? * smile *

( I love the feeling of trading ” stress FREE ” anytime…..LOL ! )

IMPORTANT POINTS TO NOTE HERE :

From the above illustration…..

You should see a ” Pinbar ” formed after we have profited the first 45 pips too..right ?

OK…..this is crucial to this exit strategy….so do understand what I have to share next..

IF…..the Profit Target has not been hit AND You see such PIN BAR in the market…

THEN it is ” advisable ” to manually closed the first position ( 45 pips for this case ) …

( And shift the stop loss of the 2nd position to Break-Even too…)

This step is MANDATORY because when there’s a Pinbar formed….most of the time it would retrace/ reverse..

So in order to ” secure more pips “…..we would rather PLAY SAFE abit….and just exit at the candle closed…

Got this so far ?

Good…..

————————————————————————————————————————————————-

Let’s proceed onto the exit strategy for the 2nd position next :

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For the 2nd position, I am aiming for 60 pips of profits like I mentioned earlier ..

This is 2 x  the Stop Loss value ( 30 pips )…..remember ?

And with the Stop Loss being shifted to BreakEven now..

It is basically a ” FREE RIDE ” now …

Cool eh ? * smile *

After trading for about nearly 2 hours…

The Take Profit target of 60 pips for the 2nd position was hit at Price 1.36290..

( Although the price did retrace to almost near our Breakeven point….but fortunately it did not hit that point after that so this trade still proceed smoothly to the TP price….)

Below is the illustration for You to understand more :

Using this NFP trading strategy..

A total of 105 Pips ( 45 + 60 ) have been profited trading over  a 2 hours period…

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Here are the 2 earnings screen-shot with the Entry, Stop Loss & Take Profit to share :

1st Earning Screen-Shot ( 1st Position )

( click to enlarge )

2nd Earning Screen - Shot ( 2nd Position )

( click to enlarge )

Using this NFP strategy, a total of  105 pips  ( 45 + 60 ) have been nailed.

Which netted me about USd $2,100.00 of profits from this trade as You can also see from the earnings screen shots above..

Not too bad eh…?

( You can do it too….if You want….! * smile * )

As a matter of fact……

Many people are very keen on trading this super volatile major news announcement which released on the first Friday of the month..

Some people simply made 10 - 20 pips each time…

Some managed to nail 50 - 100 pips ( just like I do ) or even more…

However…..the fact is that only a small percentage survive…. ( out of  the many  who actually tried  …)

So if You’re here reading about this Non Farm Payroll strategy of mine because You truly want to succeed  ( or fight back what You lost previously )..

Then feel free to get familiar with this strategy based on Price Action + Fundamental ( numbers ) on a demo account on the next few NFPs..

This is without a doubt a very Proven Technique to trade the NFP ” Profitably ” and include all the good things most trader wants out of any strategy such as :

1)  You guys want to know ” how to analyse the market for BUY / Sell ” with high accuracy

2)  You guys want to know what  ” stop loss ” to use & WHERE to place it ” strategically “

3) You guys want to know what ” take profit ” to aim for yet maintain within the realistic range..

All of these are made possible because of the power of Price Action basically..

With given ” hints ” from the market ….You would be able to extract those ” hints ” and put to Your advantage…( once You know how ! )

So having read till this point…

What should You do now in order to trade with this kind of confidence and accuracy  then?

If You are still not proficient in reading Price Action directly from the market…

Learn It Of  Course ! *grin *

You would definitely benefit tremendously from Price Action too in the long term in almost ” ANY ” market conditions….not just trading the major news..

Alright…so much for this sharing on my 2nd trading strategy for the NFP…

I hope You have learn another proven strategy now….and also progressively expanding Your forex strategies basket too….

Remember to DEMO any strategy using virtual money first before You use them in any LIVE account alright ?

Trading with confidence override trading with ” Fear and Anxiety ” anytime…….agree ? * smile *

( especially when REAL money is involved…..and nobody likes losing definitely…)

Till then…

Happy trading !