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The Ultimate Guide to Nailing NFP on the 1-Minute Chart

trading NFP on small timeframes

When it comes to non-farm payrolls (NFP), most traders picture high volatility, whipsawing price action, and blown accounts. But what if I told you there’s a way to thrive in the chaos—by mastering the 1-minute timeframe?

Yes, the 1-minute chart might seem like a caffeine-fueled rollercoaster, but it’s a hidden gem for trading NFP with ninja-like precision. Stick with me, and I’ll share insider strategies, unheard-of techniques, and the one secret most traders overlook when navigating this high-stakes trading event.

Why Most Traders Fear NFP (And How You Can Beat Them)

Imagine this: NFP numbers drop, and traders across the globe panic. They overleverage, hit the wrong button, or fall victim to emotional trading. It’s like buying shoes online and realizing they’re two sizes too small—regret comes fast and hard.

The truth? Most traders fear NFP because they don’t have a clear plan. But the 1-minute timeframe isn’t the problem; it’s the solution. This timeframe offers micro-level clarity, allowing you to spot entry points, avoid false moves, and ride the trend with sniper-like precision.

The 1-Minute Mastery Blueprint

Let’s dive into the exact steps to dominate NFP with the 1-minute chart. Ready? Here’s your game plan:

Step 1: Pre-NFP Prep

  1. Check the Calendar: Know the exact release time of the NFP report. Use reliable sources like Forex Factory to avoid surprises.
  2. Set Key Levels: Identify support and resistance zones on higher timeframes (15M, 1H). These levels act like magnets for price action.
  3. Assess Volatility: Look at the Average True Range (ATR) for the past 24 hours to gauge potential price swings.

Step 2: The Calm Before the Storm

  1. 15 Minutes Pre-NFP: Reduce your lot size. This isn’t the time to go all-in. Think small, act smart.
  2. Watch the Spreads: Widening spreads during NFP can eat into your profits. Choose a broker with tight spreads (no funny business).

Step 3: The NFP Explosion

  1. Wait for the Fake-Out: The first spike after the news release is often a trap. Avoid the urge to jump in—let the amateurs make their mistakes.
  2. Follow the Real Momentum: After the initial fake-out, identify the real trend. Use tools like the RSI or MACD to confirm the direction.

Step 4: Ninja-Level Entry

  1. Use Pending Orders: Place buy-stop or sell-stop orders just above or below key levels to catch the real move.
  2. Risk Management First: Set a stop-loss below the last significant low (for buys) or above the last high (for sells). Aim for a 1:2 risk-reward ratio.

Step 5: Secure the Bag

  1. Trail Your Stop: As the trade moves in your favor, trail your stop-loss to lock in profits.
  2. Don’t Be Greedy: Exit partially at predefined levels. The market can reverse faster than you can say “NFP whipsaw.”

Insider Tips That Separate the Pros From the Rookies

1. Trade Like a Sniper, Not a Machine Gunner

Overtrading is the #1 enemy on the 1-minute chart. Be patient. Wait for high-probability setups, and remember: quality over quantity.

2. Leverage the Power of Correlation

Before jumping in, check related markets like the USD Index or Gold. If they confirm your bias, your trade has a higher chance of success.

3. Myth-Busting the “Too Small” Timeframe

Contrary to popular belief, the 1-minute chart isn’t too noisy. It’s a goldmine for quick scalps when paired with the right tools, like Bollinger Bands or VWAP.

Case Study: Turning Chaos Into Opportunity

In October 2024, NFP exceeded expectations, adding 336,000 jobs. The EUR/USD spiked 60 pips in two minutes before reversing. Here’s how a trader (let’s call him Alex) nailed it:

  • Preparation: Alex marked key levels on the 1-hour chart and set pending orders.
  • Execution: He ignored the fake-out, entering long after a confirmed breakout above resistance.
  • Result: Alex secured a 3:1 risk-reward trade in under five minutes.

The takeaway? Preparation + patience = profits.

Advanced Strategies for 1-Minute NFP Trading

1. The “Bracket Strategy”

Place a buy-stop above resistance and a sell-stop below support 5 minutes before NFP. Once the real trend emerges, one order activates, while the other serves as a hedge.

2. The “Hidden Liquidity Hunt”

Big players leave clues—hidden liquidity zones where price often reverses. Use Volume Profile to spot these zones and position yourself ahead of the herd.

Wrapping It All Up

Trading NFP on the 1-minute timeframe isn’t for the faint of heart, but with preparation, discipline, and the strategies shared here, you can turn chaos into opportunity. Remember, the market rewards the prepared trader—not the lucky one.

Essential Takeaways

  • Wait for the fake-out.
  • Use tight stops and smaller lot sizes.
  • Leverage correlation for added confirmation.

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Image Credits: Cover image at the top is AI-generated

PLEASE NOTE: This is not trading advice. It is educational content. Markets are influenced by numerous factors, and their reactions can vary each time.

Anne Durrell & Mo

About the Author

Anne Durrell (aka Anne Abouzeid), a former teacher, has a unique talent for transforming complex Forex concepts into something easy, accessible, and even fun. With a blend of humor and in-depth market insight, Anne makes learning about Forex both enlightening and entertaining. She began her trading journey alongside her husband, Mohamed Abouzeid, and they have now been trading full-time for over 12 years.

Anne loves writing and sharing her expertise. For those new to trading, she provides a variety of free forex courses on StarseedFX. If you enjoy the content and want to support her work, consider joining The StarseedFX Community, where you will get daily market insights and trading alerts.

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