The Right Forex Trading Strategies For Each Session
Although the market is open 24 hours a day, but the conditions on the market are always different. Therefore, the trading system in each session needs to be differentiated.
One of the facts of the forex market is that the market never closes. Although the market is open 24 hours a day, 5 days during the week, and 4 weeks for a month, but the conditions on the market are always different. Today’s price will be offered lower, maybe in the next day the price will be offered higher.
Support And Resistant Strategies for Asian Sessions
In general, the price offered in this market session is less than other sessions. By looking at the generally low price offer, the trader can use his strategy to achieve profit at the offered price. If the bid price is small, then often the price does not move too much. Especially when there is in the area of support and price resistant sometimes back to the original price movement.
For that reason, an understanding of the session is needed in order to understand when the strategies you use in trading can be utilized. The Asian session is one of the slowest moves among the other sessions. Therefore, support and resistance strategies need to be used to limit market space and capture profit opportunities in Asian session.
Breakout strategy for the European session
At 14.00 pm movement in the European session quite large. The liquidity of transacted prices is overwhelming. Price volatility is sometimes enlarged. In this market many people consider the European session is the heart of the forex market. Because the movement is very large and form a trend will happen quickly.
The most visible is the liquidity began to come into at exactly 14:00 pm. This opening of markets from London is beginning to have massive transactions conducted by people all over the world. London is the center of the largest forex market, bringing with it the largest liquidity. This can be seen in some major currency pairs such as on EURUSD, GBPUSD, and others.
In this session, the need for carefulness in anticipation of the sometimes uncertain market turmoil. Support and resistance in this session may be penetrated more easily to become a new trend. From here the strategies can be used using breakout strategy. Breakout strategy is able to create more profits by utilizing the trend breakdown caused by massive transactions worldwide. By applying breakout trades, traders will usually benefit easily and quickly once the London market opens.
Breakout Strategy and Support Resistant for American sessions
At 19:00 pm the opening of the American market began to open. Liquidity offered in this session was spelled out very large, can even move the market hundreds of points. At the opening of the American market, it turns out the European session has not closed, and there was a buildup of transactions that result in greater volatility in the price make the movement more terrible.
In the previous session you can only take advantage of the breakout strategy. Now you can use 2 strategies at once ie breakout and Support Resistant (SR). To note, that at the opening of the American session, the price movement will be similar to the London session until 22.00WIB. From this opening, you can take advantage of breakout strategy. After 22:00 pm the price will be similar to the Asian session. At that time you can apply the SR strategy in your trade.