NFP High/Low Levels Plus

How it works

The NFP High/Low Levels Plus indicator captures and stores the 12 most recent Non-Farm Payroll (NFP) days and their corresponding values. It automatically draws horizontal lines representing monthly high and low price levels on the chart, with optional labels for clear identification. The indicator also creates dynamic support and resistance boxes that update automatically as prices cross NFP value levels.

Additionally, the indicator offers macro and micro directional indicators that help traders assess potential market direction. The macro indicator determines market sentiment by evaluating two consecutive days' open and close prices relative to the most recent NFP high or low level. Similarly, the micro indicator analyzes short-term price movements using 10-minute candle closes in relation to the 20 Exponential Moving Average (EMA).

Why it may be useful

The NFP High/Low Levels Plus indicator provides traders with critical insights into market dynamics by leveraging one of the most significant monthly economic data releases. By highlighting historical NFP high and low levels, the indicator helps traders identify potentially strong support and resistance zones that can influence price movements. These levels are derived from the Non-Farm Payroll report, which represents 80% of the US workforce employed in manufacturing, construction, and goods-producing sectors.

The directional indicators offer additional value by providing quick visual cues about potential market trends. The macro and micro indicators help traders quickly assess market sentiment and potential price direction, enabling more informed trading decisions. By integrating economic data with technical analysis, this indicator bridges fundamental and technical trading approaches.

When to explore it

The NFP High/Low Levels Plus indicator is most effective during periods of economic data releases and when trading instruments closely tied to US economic performance. It is particularly valuable for traders focusing on forex, stock indices, and commodities that are sensitive to US labor market data. The indicator's strength lies in its ability to provide context around significant economic events and their potential market impact.

Traders should pay special attention to the indicator during monthly NFP release days and in the subsequent trading sessions. It is most useful for day traders and swing traders who want to incorporate fundamental economic insights into their technical analysis. The indicator is especially helpful when combined with other technical tools and when trading instruments with high correlation to US economic indicators.

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