Day 25 | GBP/USD 1m Scalping of breaks after retest (7th of May 2021) - market maker closed and NFP pump [VIDEO]
Today I got to experience a very nice market maker model closure with an expected pump afterwards. I came to my laptop a bit late so I couldn't join the drop but I did join the pump. I need to admit that it was still risky as I was basically using the DCA (dollar cost average) method that should practically never be used but I just risked it..If it were real money I would probably use lower lot sizes..
hhh now while watching a video about market news I realized that I once again totally forgot to realize that it's an NFP (NonFarm Payrolls) Friday today...that just proves that I really trade just based on the price action and don't watch the news at all...so now it makes sense that we got that huge pump at 8:30 NY time of over 70 pips...I was really surprised about that...ok now it's clear... I didn't trade it though as I already had my profit for today, and as I've mentioned in previous posts, I prefer not to risk after that...
NFP represents the total monthly increase or decrease in paid U.S. workers of any business (excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals, and farm employees).
So why did GBP/USD pump instead of dumping? Well it was a shocking news as the expected number(Forecast) was an increase by 978K employees for the previous month. However, the reality(Actual) number was just 266K, which is 3.6x less new employees than expected. This makes traders wanna sell USD instead of buying and thus USD forex pairs like GBP/USD that I trade, are going to most like pump hard after such a fail, expecting US economy growth not so strong.
WOW but that was a really nice pump - next time I need to make sure that I dont' forget about the NFP Friday as it's very probably that I could catch at least 10 pips ($100 profit with my 1 lot) just like that...Knowing that it's an NFP I would just put my SL to BE and let it run longer...ok lesson learnt!!
My DCA trade:
💎MY MISSION is get to a level where I would end every day in profit.💎
DISCLAIMER: I'm not a financial adviser and this is not a financial advise. Remember, most traders lose money.