Following Price Patterns on Forex Prior to Non-Farm Employment Change

Following Price Patterns on Forex Prior to Non-Farm Employment Change

Price Patterns are Used as Leading Indicators for Identifying Potential Moves in Forex

 

Following the price patterns on the forex pairs prior to the release of the Non-Farm Employment Change report on Friday at 8:30am New York time allows you to identify the upcoming move prior to the news announcement.  While there is no "Holy Grail", when you combine the power of price patterns with binary options and spreads, you can limit your risk while still potentially profiting from a very volatile report. 

In this video, Gail reviews the patterns that formed yesterday and what the charts are indicating today.  It is very important for you, as a trader, to follow these patterns prior to the report because professional traders are typically positioning themselves ahead of time. 

For example, the USDJPY retraced slightly and is now making new lows.  The key here is if the new lows price push the Stochastics lower than the previous low on the Stochastics.  If it doesn't then you can assume there is a definitive slow down in momentum to the downside and if a higher low develops on the Stochastics, probabilities are that the USDJPY will go up. 

Additionally, the EURUSD has not sufficiently retraced and the market is still in overbought status.  A key development to look for here is for the market to retrace slightly then make a higher high with a Stochastics showing lower high prior to the report.  The AUDUSD shows the pattern as it did retrace back to the ATR and is trying to make a new high in price.  Again, the key will be if price makes a new high but the Stochastics does not follow suit.
 

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