Forex Pair GBP / USD At Night
Fishing pound sterling at night. For those of you who like trading GBP / USD, this system can be an input for adding income.
The GBP / USD pair is one of the most traded forex traders. However, how to trade GBP / USD that is simple and effective? Here is one strategy that is worth trying. For you Sterling lovers may be this system can be an input to supplement income. The technique is similar to scalping, only utilizing the situation at night.
Fishing GBP / USD at night
Why at night? because GBP / USD represents two central countries of world financial transactions whose trading activities are crowded at night (West Indonesia Time). Pounds (GBP) comes from the United Kingdom, while the US Dollar (USD) from the United States; so the trade was busy starting London market opening at 2:00 pm until closing New York market at 3:00 pm. The most crowded period is when the London and New York markets overlap , between 19: 00-22: 00 WIB.
This technique requires considerable price movements and fast, so it should run at night. Especially, in the overlapping hours until the end of the New York market trading period.
GBP / USD Trading Technique At Night
Currency pair: GBP / USD
Indicator: Relative Strength Index (RSI) period 10
Default Target Profit (TP): 10 points
Default Stop Loss (SL): 30 points
Margin: It’s up, but we recommend not more than 2% of Capital.
RSI indicators are available on the majority of forex trading platforms, including in Metatrader4 (MT4) , and can be installed easily. Open the platform, show GBP / USD pair on H1 timeframe , then install RSI with period 10. It will appear like this:
After the setup is installed, focus on the level 25 and 75 RSI indicators that are seen in purple shaded on the image, or similar areas on your trading platform.Wait until the price crosses the level 75 or 25 (out of the purple area). Next, take action with the following rules:
- Open Sell when prices return to level 75.
- Open Buy when prices return to level 25.
The RSI indicator alone is one of the most reliable technical trading tools. However, it would be better to combine it with other indicators as well. For example RSI plus Moving Average (MA) periods 4 and 13.
If there is a cross caused because MA-4 line cuts MA-13 downwards, then it is a Sell signal. Meanwhile, if MA-4 line passes MA-13 upward, it means Buy signal. Examples can be seen below:
n addition, also pay attention if there is a schedule of important fundamental news releases. When certain important moments, price movements can be somewhat abnormal so technical indicators are often less accurate. As long as it focuses on the 25-75 area on the RSI, then chances are still able to capture a good moment for trading. However, it is also good that short-term traders shy away from the market at those moments.