Forex Scalping on NFP Friday

Today was another day of the market moving down, down, down. On top of that, we had a very significant news announcement – the Non-Farm Payroll report.

 

*** EURUSD MARKET STRUCTURE ***

Decision Point

EURUSD Market Structure

 

The EU had clearly done another sell during the European session. Price was approaching a strong decision point. Which way would price go today?

I could predict, but with the Logical Forex Indicators – I don’t need to.

 

*** EURUSD SELL ***

Magnet Line Dance

EURUSD Sell

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Not surprisingly, they are incredibly wide – indicating tremendous amounts of liquidity in the market.
  • Logical Forex News Alert – as you can see, the New Alert Indicator kept us from trading during the critical part of the news announcement.
  • Logical Forex Flow Lines – After a very pronounced sell, price consolidated a bit and then started its’ descent down again.
  • Logical Forex Phase – Tracking along nicely with price. No apparent divergence.
  • Logical Forex Bias – Starting to again support the southward direction of price. As the move was quite quick, it is just starting to tip down again.
  • Logical Forex Magnet Lines – Notice how price plowed through the Magnet Line the first time. Since there was no Dance, I needed to be patient upon entering the trade, or expect a pullback – which is exactly what occurred. That’s why it is always the safest trade to wait for the Dance to occur. Also, note how the thick black Spine was not fully revealed until the second push on the Magnet Line. As soon as price exceeded the first push beyond (which is when my broker quote panel started to really ‘tell’ me what was happening next) it was time to hit the sell button.

 

*** EURUSD EXIT ***

EURUSD Exit

 

This was a rather quick trade. Especially in such a volatile market, I really do only like being exposed for mere minutes. I exited as soon as price started to slow, then pull back on the broker quote panel. I cannot mention this enough – you cannot watch the chart and wait for price to show its’ pull back or hesitation. You need to watch what your broker quote panel does. That is the ONLY reality from just prior to entering a trade all the way until you exit the trade.

In this case, I was happy with my handful of pips with large lot sizes. In and out quickly, whenever price goes against me.

Happy trading!

-Scott

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