Newcomers to digital options trading often do well to enter into trades that are based upon media reports, scheduled press releases, and other information related to assets and economic conditions. Such information always has some impact on market conditions because it alters investor sentiment. Easy profits can come from knowing which reports to watch and how to react to these changes in sentiment. When trading with the Non-Farm Payroll report, you’ll quickly discover that this report is quite distinct. The Non-Farm Payrol can produce all types of sentiment changes and can render the speculation process quite challenging at times.
The report comes out on the first Friday of each month and U.S. economic status is often judged by these numbers. Once released, prices for commodity futures and USD currency pairs are likely to start moving. This is when a breakout can occur. Be watching for the price to push past its record high in the first couple of candles within a Forex technical analysis chart (many traders use MetaTrader charts). If this starts to happen, trade.
You’ll want to quickly start looking for an extra trade position based on the new high or low. Don’t be tricked by a bogus breakout. Be sure that the high or low is cleared before trading. As soon as it does, the price movement prediction should be obvious. The results of the Non-Farm Payrol report are going to vary every month, but the asset price movement is almost always strong. Pivot points and support and resistance lines can be exceeded without any notice. After the price has gone through its changing movement for 30-60 minutes, normal price action should resume.
Reversal is possible. Be watching for the asset price to move solidly in one direction for no less than 10 minutes after the report comes out. Then wait for the asset price to drop to the low candle before trading. If the low is broken, expect price movement in that same direction. This is a distinct setup that will allow you to trade based on the price breakout to the appropriate side. Such opportunities will not show up every month, but keep them in mind when the Non-Farm Payrol is released each month.
The Non-Farm Payroll report can offer plenty of different digital options trade possibilities. Just be sure to never force your trades. The best opportunities will come to you once you know what indicators to look for. This advice holds true with any of the important data reports, so watch for great profit chances whenever economic reports are released.