1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Wednesday February 1, 2012 - 8:15am EDT (NY TIME) - ADP NFP

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Feb 1, 2012.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please see my trade plan below

    ADP Non-Farm Employment Change
    Forecast 190K
    Previous 325K
    Pair to trade: EUR/USD
    Triggers we need: BUY 145
    SELL 235

    Economical Impact: High
    Typical Result: Actual forecast is good for the currency
    Occurrence: This data Released monthly, about 2 days after the month ends.

    About our Triggers:
    If US Non-Farm Payroll Employment Change number comes out at +45 or less EUR/USD should go down by about 40 pips. We are using triggers of -45 for short.
    If it comes out at +45K or better EUR/USD should go up by about 30 pips.
    We are using for +45 trigger for long.

    What is US ADP NFP? Why do we care?
    ADP provides payroll services to many Businesses in the US. They use the data collected from their customers to derive the overall employment estimations. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
    The total nonfarm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States. The nonfarm payroll statistic is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity

    Method to trade this:
    Stavro D’Amore Trading Method

    Please keep in mind possibility of Revision number before entering any of these strategies.

    Prior to the release (20-15 mins) I will be looking for a short term short position in USD/JPY and I will get out of this trade 30 seconds before the actual release or any spreads that should widen.

    I'd recommend spike trading as the best option when there is great uncertainty in the markets; also the liquidity is very good at the moment if you’re using an ECN broker.

    I will look for a 50% retracement in the original spike before entering a trade; I will sell half my position as soon as I hit the original high point of the first initial spike, and place a SL at entry price. My TP level would be Just before a resistance level or if the chart decides to form a level looking at a 15 min time frame.

    Historical Chart and Data for US ADP Non-Farm Employment Change

    All the best

    Stavro D’Amore
  2. shabazzster

    shabazzster Recruit

    Jan 16, 2012
    Likes Received:
    very good call, where are some good places to recieve the news of these events?

Share This Page