In this FREE Forex Strategy, we are going to show how we use our simple divergence based system on M5 timeframe to trade the NFP Report. Please read this post where we explain our Forex Scalping System for M15 timeframe in more detail before you continue reading below. If you are a forex trader, you must be aware of the fact that NFP Report has the potential to move the market big time. Many traders love to trade this NFP Report. If you have been reading our previous posts, you must be familiar with our trading system. This is the exact same system that we use for scalping as well as swing trading. The rules are the same for both scalping and swing trading, the only difference is the timeframe. We do scalping on M5 and M15 timeframe while we do swing trading on H1 and H4 timeframe. Take a look at the following screenshot of EUR/USD M5 timeframe taken just at the time of the NFP Report release.
As the above screenshot shot shows the price is shooting up just within minutes of NFP Report release. All the three indicators RSI, Stochastic and the MACD are showing strong bullish divergence. But as we had said before in our previous posts, we prefer M15 timeframe more than M5. So let’s check what M15 timeframe is showing. Take a look at the following screenshot.
Here also we find the three indicators RSI, Stochastic and the MACD showing bullish divergence. So we make an entry at 1.32000 with the stop loss at 1.31850. Our risk for this trade is just 15 pips. In just a matter of few hours we make more than 90 pips. We get out just at the red arrow in the above screenshot at 1.32900. As you can see MACD has changed color meaning the trend has changed now. So we make 90 pips in just a matter of few hours. Now had we traded GBP/USD at the time of NFP Report, we would have made around 300 pips. Take a look at the following screenshot.
Unlike EUR/USD, GBP/USD developed a strong bullish divergence pattern hours before the release of the NFP Report. At the release of the NFP Report, GBP/USD moved around 300 pips. You should also download this 117 page eBook on Forex Scalping FREE that details many more scalping strategies.
As the above screenshot shot shows the price is shooting up just within minutes of NFP Report release. All the three indicators RSI, Stochastic and the MACD are showing strong bullish divergence. But as we had said before in our previous posts, we prefer M15 timeframe more than M5. So let’s check what M15 timeframe is showing. Take a look at the following screenshot.
Here also we find the three indicators RSI, Stochastic and the MACD showing bullish divergence. So we make an entry at 1.32000 with the stop loss at 1.31850. Our risk for this trade is just 15 pips. In just a matter of few hours we make more than 90 pips. We get out just at the red arrow in the above screenshot at 1.32900. As you can see MACD has changed color meaning the trend has changed now. So we make 90 pips in just a matter of few hours. Now had we traded GBP/USD at the time of NFP Report, we would have made around 300 pips. Take a look at the following screenshot.
Unlike EUR/USD, GBP/USD developed a strong bullish divergence pattern hours before the release of the NFP Report. At the release of the NFP Report, GBP/USD moved around 300 pips. You should also download this 117 page eBook on Forex Scalping FREE that details many more scalping strategies.