Asian Breakout III Trading System. Move stop-loss to break even after the first target profit is hit Exit the second lot at the close of the 5-min bar . The 20 pips Asian session breakout Forex trading strategy allows you to trade breakouts upon the the opening of the London trading session. What is so special about the time when the Asian session dies off and the London session begins that there is a system called Asian session breakout?
When price triggered the buy stop order, we immediately deleted the pending sell stop order. This breakout was successful as price moved more than pips in a row. As both volume and volatility of Asian session are comparatively lower than London or New York session, your primary target should be to achieve at least 1: At times, your trade may offer better R: R but it depends on your patience of holding the current position and effectively managing your trade.
The above chart is just an extension of our previous example illustrating the benefit of holding an Asian breakout position until it hits the daily resistance level. According to the Asian breakout trading rule, your stop loss should be below the range low, which is about 50 pips on the above chart. If you held the above trade, your profit could be more than pips with a risk to reward ratio of 1: Such profit from one single intra-day trade can ease your trading pressure for the whole week!
Fundamental news and major events affecting those currencies are normally released during the Asian session. Therefore, you may watch those currencies for potential breakouts because they are traded with higher volumes than the other currencies. The Asian breakout strategy could be unquestionably a good start of your trading day and may ease you from the pain of whole day trading and endlessly watching the charts.
Importantly, you should not utilize a trading strategy blindly. Choppy or sidelines market conditions may fail to generate successful Asian breakouts and lead to false breakouts and increased losses. Therefore, you should place your stop orders appropriately according to the market trend direction and add support or resistance levels for better confirmation of your decisions.
Ultimately, the Asian breakout strategy is very simple to understand and traders should use it to maximize their profits for any trading day. Have you used the Asian breakout strategy for trading currencies online? Please share your thoughts and experiences in the comment section below. In this example the highest. As you can see these.
Both sides of it will be our breakout. The idea of the system is — trading a valid breakout of. Enter with a buy order as soon as. In this case enter with a buy order at See example for high breakout: Incase the low breakout occurs, enter with a sell order.
In the example below the lowest low is Hi Mangi, does this strategy only when no fundamental news are released on that day? Just to confirm, is the London open at 8am U. But if you take a trade and if any news releases are going to be made that day, then maybe take some or all profit or of you move move stop loss to breakeven and see what happens…the news may work in your favour.
Your Quote on rule number 1: Based on this quote, any good indicator which is reliable so that it can tell you if its ranging or in trend? By observing the range of Asian Session, are you looking at the whole day hourly chart time 8am tokyo to 4pm tokyo time or just only the last closing hours of tokyo?
Price action gives you much more clarity than any other indicator in my opinion when you want to determine such things. Refer to rule 1 up there…. Could you tell us in your own opinion how many pips you will consider too large a range to trade this Asian Break out strategy?
Mail will not be published required. In general, the Asian session is a quiet time to trade.
Hi Mangi, does this strategy only when no fundamental news are released on that day? Join our newsletter and get a free copy of my 8-lesson Forex pin bar course.