A simple strategy where investors assume the initial market reaction and price target are correct. If the market sharply moves after the NFP release, traders believe that this is the beginning of the trading day ahead.

Traders usually tend to assess the preceding reference points to approve a new trend. For instance, if the move break’s the previous day’s entry price, some traders see this as a considerable market sentiment change and expect the market target price to improve.

--

--

Alexeyfox

Alexeyfox

Alex holds a postgraduate degree in Financial Modelling with a specialization in Asset Analysis.