1. Trading by the news: Weekly unemployment report

There are two factors that make Unemployment Reports a high probability trading event: they are published every Thursday at 8.30am ET and this event is translatable. market transfer.

With this news, S&P 500 and Dow Jones index futures will perform best. The Dow Jones may be more volatile because the S&P 500 has a much larger range of assets.

What determines the direction of prices lies in how you interpret the market in numbers. More specifically, the market sentiment.

Here are the trading settings:
  • Step 1: Record information about unemployment news at the beginning of each week
  • Step 2: Identify the bottom of the morning oscillator on the day of the news
  • Step 3: Depending on the trend, place a buy stop order above the top or a sell stop at the bottom.
  • Step 4: Place the stop loss at the top of the opposite bottom.
  • Step 5: Set take profit at 61.8% to 100% on the Fibonacci (draw fibo in trend).
See the example below:

2. Trading in the price range with VWAP

Getting bottom fishing is difficult because you should not trade in times of low volume market and it is important that you do not basically grasp the cash flow of large organizations.

However, VWAP can help you with this. VWAP is an indicator that tells you the average price of a security based on both volume and price. If an institutional player (such as a fund manager) wants to participate at a competitive price, they generally consider that price as a reference point for their entry points.

See the photo below:

The VWAP indicator combined with the Stochastic indicator can help us capture the right entry time.

Looking at the chart above you can see that the price is much higher than the VWAP indicator, it also corresponds to an oversold status on the stochastic. There is a high probability that the market will drop more.

So our trading setup will be:
  • Step 1: Recognize that the market is sideways in the short term.
  • Step 2: Find the moment when the asset goes well beyond the average price on the VWAP indicator.
  • Step 3: Wait for the price to move toward one of the 2 ranges of the sideways price range.
  • Step 4: If there is a divergence with stochastic, sell if it's a top and buy if it's a bottom. Place stop loss at the top for a sell order and below for a buy order.
  • Step 5: Exit the order when the price cuts VMAP.
3. Set up a 1-2-3 trading

This setting is as follows:

For the uptrend
  • Prices start at a certain point
  • The price goes up
  • The price recovered but was still on the bottom first
If the trend continues to rise it must overcome that resistance of 2.

For the downtrend
  1. Prices start at a certain point
  2. The price goes down
Prices returned but were still below the previous peak
If the trend continues to decline it must surpass that support of 2.

Note, the larger the time frame, the more reliable the trend will be. Therefore, the supportive resistance will also be more reliable. So try to trade on the H1 frame onwards.
And below is our trading setup.

Trading principles

  • Step 1: Recognize current trends
  • Step 2: Wait for the rally to appear on the trend (create point 3).
  • Step 3: place a buy stop (for an uptrend) and a sell stop (for a downtrend) when the price breaks down 2.
  • Step 4: Place your stop-loss below 3 or follow the signal you entered but be aware that it should be below 2 (for an uptrend) and above 3 or 2 (for a downtrend).
  • Step 5: Exit the order when the price goes about 1 to 2 equivalent.