U.S. employment report release window
Hello!
I’m Satori, researching FX.
Today I will deliver an entry point before and after the U.S. jobs data release.
The figure below shows the USD/JPY 1-minute chart and the movement of the Break Catch indicator around the release time of the U.S. employment statistics in Japan time, around 21:30 on September 7, 2018.
http://livedoor.blogimg.jp/fxmt4indicator/imgs/c/a/ca215e6c.gif
In the figure above, the 1-minute chart is set to a 5-pip reversal, so when the price rises 5 pips from the lowest red line of the previous downtrend in real time, it turns bullish and the blue line is drawn.
At the time of the U.S. employment data release, it surged at 21:30 Japan time and broke through the previous high peak, as can be seen.
Later, the price narrowed in a triangle-like fashion and again broke the previous high.
The dashed horizontal line is a signal where the previous high resistance line becomes a support line, i.e., a resistance-turned-support transformation.
Next, when viewing this movement with a Point and Figure chart, it looks like the image below.
http://livedoor.blogimg.jp/fxmt4indicator/imgs/c/2/c2abce48.gif
In the above Point and Figure chart (PF chart), it is easy to grasp the trend before the U.S. employment data release.
Because non-time-series charts contain more price information than time-series charts.
It is clear that the lower prices were rising in an upward path at the time of the release.
In the short term, the upside pressure was stronger.
Around a few price points shown in the figure above, you could buy on a breakout that exceeded the previous high before the release, or buy at a pullback where it formed a circle.
Also, it was correct to simply ride the breakout after the release, and it was also correct to buy on the pullback in the subsequent triangle consolidation.
In a pullback buying scenario, ideal entry is at or below half of the rise in the X-column formed by the immediate past or the one before that.
Thus, when volatility is high around U.S. employment data releases, the P&F chart for filtering noise and the Break Catch Indicator for detecting real-time important highs and lows can be helpful from both perspectives.
The indicators related to today's article are as follows.
and Separate Sell/Scalping Tool Indicator and EA
Also, the Point & Figure Chart Indicator now displays the most recent high and low on the right side of the chart.
A free version upgrade will be available soon.
