As soon as I posted previous article (Ichimoku Analysis) in which I wrote “I don’t trade until NFP…”, I immediately got the email which said “that’s your decision but I want to trade today. Show me some setups”.
So here it is.
All Yen pairs have been dropping in Asian hours, and this trend may continue until NY time. Also we should only focus on spot trades until NFP right?
Thus I recommend the scalp/spot trades with Moving Averages.
The above chart (GBPJPY 15M chart) shows the basic setup. We use 4 moving averages.
21 & 55 EMAs represent the market trend, while 5 & 8 represent the price actions.
Entry should be
a) 21EMA < 55EMA, and
b) 5/8 cross down, then SELL
Exit should be
a) 5/8 cross up, then EXIT
In fact, this strategy can be used to any currency pairs, and any timeframes.
Of course, if you also consider Support & Resistance, and try to sell only from the resistance, that would be the perfect trades!!
On the day like today, when seeing the one-direction trend and knowing NFP annoucement will be in 8 hours ahead, it may not be a bad idea to apply this simple trade strategy.
Me? Still I don’t trade today. 🙂