Friday, July 3, 2009

Comparing Historical Non Farm Payroll News Events







  • On the 3th of april, the prices where already above camarilla H4 in the morning then retraced enought for a test of the double top was after 8.30 am the case.
  • On the 8th of may, prices where already above camarilla H4 in the morning but did not retrace therefore no big move after the news release

  • On the 5th of june, prices where above camarilla H3, so quite bullish, then retraced and rallied to R2 after the release, such quick moves obviously will be faded so going short after the US market open was very profitable

  • On the 2nd of july, prices already went down to camarilla L4, then a choppy trading range prior to the news, so on this day staying short the entire day would have been the best decision.

Conclusion:

All NFP events are different, if we have a trend the NFP might just be a pause or push the prices even further in the direction of the trend. On a reversal its important to know where the next target is, if a news event pushes the prices into this target zone in a matter of 1-2 minutes chances are very likly that the trend will NOT continue in this direction as a double top or bottom is formed. Even after News events that push prices clearly outside of any support/resistance area, the trend will also not go forever but pause or even reverse at 3 new swing highs or lows.

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