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The use of a flat in the Asian session on Forex
The Asian market is often used in Forex trading not just. Specificity in the behavior of prices is clearly visible when it comes to the functioning of financial markets in Asia. Traders who prefer flat, calm using the market to their advantage. To understand how traders skallerud on the Asian market, the whole process of trading take a closer look.
The currency market is not homogeneous, can be divided at least into two States: trend and flat. If, during the operation of the American and European markets, we often will watch the Forex trend movement, the Asian markets are more prone to platovym situations.
A trend is considered to be a price movement or upward, growth rates, or in the direction of its reduction. So if you see that the curve on the chart of the trading instrument is falling for a long time, then we say that the market has a down trend and Vice versa if the price increases, the claim on the upside. But the market may not always be in a state of certainty.
Thus, there is a second market condition, which is called flat. As You may have guessed, this so-called flat sideways movement of prices. The situation, when there is an indefinite direction of the market, i.e. short-term fluctuations in both directions, without selecting one of the two trendy areas, is the flat on the market.
It is known that the volatility of any currency pair largely depends on the time of day. This is due to the fact that the components of a currency pair, in different degree of interesting the stock exchange or that. For example, such currency as the canadian dollar, the Swiss franc not so much in demand during the Asian session. It is logical to assume that, for example, the British pound, began to haggle with the opening of stock exchanges in Europe, for example, in London. Based on such insights have begun an active search of combinations of currency pairs and exchanges. The results were important to traders who then planned to work offsetowych market conditions.
Scalping in the Asian session
Such traders and is still called "night scalper". The fact that the best variants were detected at night (M. S. K.), during the Asian session. A feature of the trade was the lack of strategies at the breakdown when the transaction opens in the calculation of the development trend. On the contrary, speculators have started to work in the opposite way. They determined the maximum and minimum prices over a selected period of time, usually a few hours before the Asian session.
As soon as the price was approaching the top point, opened a sale transaction, respectively, if the price went to the lowest point, there was a purchase. Of course, the above only briefly describes the idea, and the night scalping has become much more elegant and not infrequently difficult. But the main point that the above written would be worth to remember that on a number of pairs during the Asian session the more likely sideways than trending.
Based on this observation, the speculators began to invent all sorts of ways to profit. Agree that it is much easier to work with if you already know about the most common state of the market at a given time.
How to trade in Asian session?
Most often used in the flat price channel, where scalpers operate on the so-called rebound of the price from the channel walls. Traders are more willing to use the currency pairs to trade, which up to this point wasn't paying attention, for example, EUR/CAD and EUR/GBP.
All trade turned to the opening of many small transactions in the state the lateral movement of the prices. It should be noted that until now, this method of trading is still relevant and there are a number of successful automated trading systems, which were designed to run during Asian session.
To trade during the Asian session speculator you must first select one of the ways of formation of the channel. Here are some of them:
• channel indicators
• graphical plots with horizontal and oblique straight lines
• fractal indicators
Channel indicator the chart indicates the average boundaries of market movements. If a sharp market move that takes the price outside the channel, it is a signal to open a position. The direction of the transaction, of course, the opposite of breaking through the wall of the channel.
The plotting does not require special programs. It is sufficient to find the MetaTrader 4 terminal standard line to mark on the chart the channel. This will allow you to see the boundaries of the building in time to notice the breakdown of the channel.
Fractal indicators helps to understand what a local minimum and maximum prices can represent a point of the channel. It may not be the most obvious option for trading in the Asian session, but it is also widely used by scalpers.
I would like eventually to note that trading in the Asian session in Forex is a scalping. It's short, the objectives of which, as a rule, do not exceed a couple of dozen points. Such work on the market require the speculator of patience as the price movements will not differ with increased activity.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 261
| Rating: 0.0/0 |
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