26/5/ · A two-step strategy for the Asian session. This two-step strategy is rather reliable and easy-to-execute. Because of the specific conditions, it is suitable for day trading. Let's find This is a very simple Asian Session Breakout Forex trading strategy based on price action trading using the 1 hr candlestick chart. No indicators are required for this trading strategy; 21/11/ · Asian Trading Strategies (Backtest) With the world getting increasingly connected online, it is now easier to diversify your investment portfolio into other economies. Asia is 10/3/ · We will cover trading concepts like ranges, accumulations, daily ranges and different types of Asian session ranges, which you can include in your trading strategy to ... read more
This forex trading strategy is almost similar to the london breakout forex trading strategy but the difference here is that you are aiming for only 20 pips profit each trade.
Because of this, you will generally tend to see the Asian market will be in consolidation traveling in a narrow range. But that soon changes as soon as the London and European forex market opens, the volatility and the volume increases and this causes price to breakout of the Asian session market consolidation.
Now, you need to refer to this forex chart below when you go over the rules of this breakout trading strategy:. Currency Pairs : GBPUSD, GBPJPY, EURGBP, EURJPY Forex Indicators: none Timeframes: You can use 15, 30mins or 1hr timeframes. This Asian Session Breakout Strategy is designed to capture that breakout. Now, you need to refer to this forex chart below when you go over the rules of this breakout trading strategy: THE TRADING RULES The trading rules for the 20 pips Asian trading strategy are really simple: At least 1hr before the London market opens, you need to identify the highest high and lowest low of the Asian trading session.
The ideal situation would be that the Asian session was traveling in a tight range during that day. If the Asian session was in a good trend and not in a consolidation during the day, then if you tried to find the range, it would be too high…which means your stop loss would have to be very large to cater for that wide range!
So only target days where you really see tight trading range during the Asian trading session. Every session has it's open and close time when it begins or ends.
Usually, the open and close time for each session varies according to location and the time zones. Sometimes, it also varies according to seasons, because of seasonal daylight saving time DST. For example, the New York session is the hours when all state and commercial organizations in NY start their work, in accordance with winter and summer DST. Fortunately, there is no need to keep all these conditions in mind, since there are plenty of Forex market time converters available online, like www.
com , which can give you actual and precise information about the time zone you are interested in. You can add a few time zones into the chart, and see time at all zones simultaneously, which is very convenient.
The Asian session is often called the Tokyo session as well. It begins with the Sydney open GMT and ends with the Tokyo close GMT. Japan is the world's third-largest Forex trading center and even though we call it the Tokyo session, not only Japan is involved in trading in this period. There are also Hong Kong, Singapore and Sydney that participate actively as well.
Asian Tokyo trading session is not as liquid and volatile as other major sessions, however, it remains highly popular, because Japan is the third-largest Forex trading center in the world. Here you may have a look at the average Asian pip ranges for the major currency pairs. What does a pip range mean for your trading? The bigger the pip movements are, the bigger is the volatility and the more opportunities arise that increase the possibility to profit or loss from the trade.
Use the best trading platform to get the best from the Asian session! These pip values are the mid range of past data and they vary according to the liquidity and other market conditions. This two-step strategy is rather reliable and easy-to-execute.
Because of the specific conditions, it is suitable for day trading. Let's find out, how to make money, while America is asleep? Volatility brings both great profit and loss opportunities.
Unfortunately, volatility during the Asian session is not very high, but this session has its own advantages. The lowest volatility in the market is before GMT, because American traders are active within GMT and GMT, and Australian traders, coming to the market after that, don't usually bring much movement.
Always mind the release of economic news of the countries, which currencies you are going to trade. Especially, if the release synchronizes with the beginning of a certain session. For this strategy, you need to wait for a consolidation period between GMT and GMT on the M5 chart time frame. What is consolidation? Consolidation is a time period in which the markets pause and the indecision about the next price move exists.
Consolidation periods are used by traders as accumulation and distribution periods before getting into their larger positions. Important note: If the price is trending during the consolidation, this strategy should not be used, since the reversal necessary for the strategy may not occur. What's break out? A breakout is a price moving outside of a defined support or resistance level with increased volume.
To be in the foreign exchange business as a trader is involves a high level of risk and may not be suitable to all investor. The high degree of leverage can either be with you or against you.
To consider an investment objective, level of experience and the risk of appetite is an important factor before you want to be involve in trading foreign exchange. In this business, you could experience losses and may wash out your initial investment. That is way it is important that you have to invest only a potion in which you can afford to lose. Be advised that you should be familiar of the risk factor with foreign exchange and may consult financial advisors if you are in doubt. This forex strategy does not require any Forex Indicators.
When you say forex market, you will be considering 3 trading sessions, these are the Asian, European, and US sessions. Mostly, the trading is done during European session. This trading system takes advantage of the fact that on most days the Asian session is quite calm compared to the European trading session. We need to draw a box around Asian session defined as 11PM GMT to 8 AM GMT. The first bar will appear at 11 PM and the last bar will be done by am GMT. We will draw a box around the one hour bars during this time and include the highest and lowest point of this time in our box.
We will look at only one currency pair and this is the EURUSD. EURUSD is one of the most traded currency pair in the forex market and its volatility is good.
You can also test this method in any pairs you like as it works also in all currency pairs. The EURUSD follows a restricted trading pattern during the Asian session and in European session, we will see the pair makes a violent move in one direction.
This is the box that we draw every day on the one hour chart time frame. However, if the box has a range of pips or less, we will look to take a trade once the market trades and closes outside of the box, either higher than the Asian session high or lower than the Asian session low. There is a big move when the European session begins trading, but it will close back down.
You can see quick move upward of the EURUSD during the first trading hour during the European session, despite of sideway movement during Asian session. We can be deceived by taking a trade here but if we wait for the market to trade and close higher or lower than our box, then we can avoid this fake out bar. The target profit is the same distance as the range of our box. In this case our box range is of 30 pips.
Therefore, we would place our profit target 30 pips from our entry point. Also, as you can see, this day the market pushed down even further and we could have been able to max out our profits. To do it safely and proper, it is recommended to open two positions, close one position at profit target, move the stop loss to the entry point and let the second position run for another 30 pips from the profit target for a total of 60 pips.
In this case, there is no possible trade that day. The rule of the pips range box did indicate us to stay out of the market. The profit target of 25 pips was hit the next day, 24 hours after the trade was taken. The Asian Session Forex Trading Strategy is a profitable one and is able to give you consistent profits every day. It is recommended to stick to the rules and do not trade with your emotions. Discipline and consistency is needed to be a good trader, and come out profitable over all.
It is also encourage that you will look at different rules if you think there is a better way to trade the Asian Session. There are tons of rules but use or test it first. Save my name, email, and website in this browser for the next time I comment. Sign in. your username. your password. Forgot your password? Get help. Password recovery. your email. Home Forex Breakout Strategies Asian Session Forex Trading Strategy. Forex Breakout Strategies Forex Candlesticks Strategies Forex Chart Patterns Strategies Forex Scalping Strategies Forex Strategies Forex Trading Systems.
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21/11/ · Asian Trading Strategies (Backtest) With the world getting increasingly connected online, it is now easier to diversify your investment portfolio into other economies. Asia is 10/3/ · We will cover trading concepts like ranges, accumulations, daily ranges and different types of Asian session ranges, which you can include in your trading strategy to This is a very simple Asian Session Breakout Forex trading strategy based on price action trading using the 1 hr candlestick chart. No indicators are required for this trading strategy; 26/5/ · A two-step strategy for the Asian session. This two-step strategy is rather reliable and easy-to-execute. Because of the specific conditions, it is suitable for day trading. Let's find ... read more
The biggest volatility is seen during the European and US session. The lowest volatility in the market is before GMT, because American traders are active within GMT and GMT, and Australian traders, coming to the market after that, don't usually bring much movement. A long signal will be triggered when you have 2 consecutive candles close outside the upper Bollinger band line. The Asian Session Forex Trading Strategy is a profitable one and is able to give you consistent profits every day. When one pending order is activated, cancel the other one immediately. What's the Asian Tokyo trading session and why trading it The Asian session is often called the Tokyo session as well.While the London open is the most important part of the day, asian session forex trading strategy entire New York session is more of a slow-burn. Inside Bar Pattern Price Action Strategy Explained With Examples September 26, A breakout is a price moving outside of a defined support or resistance level with increased volume. Prev Article Next Article. HFT Profit Scalper EA Review 17 May,