This is one method that disregards Fibonacci, trend lines, chart patterns and all oscillators. Although you can change the Asian High Asian Low (I called it AHAL) system as you like by adding your own rules, the profitability of this system is not in doubt.
Let's not waste time and get into what are the new setups:
DETERMINING THE ASIAN SESSION HIGH AND LOW OF THE DAY
Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT.
ENTRIES AND EXITS
I have added a moving average to spot high probability setups, thus avoiding entering any positions against the trend. The moving average we will be using is 55-EMA on the hourly chart. All you need is to identify the trend using the EMA on the hourly chart, then switch to 5-minute time frame to enter either buy at the Asian High or sell order at Asian Low (this system will usually yield at least 10 pips for you):
Buy Order
Let's not waste time and get into what are the new setups:
DETERMINING THE ASIAN SESSION HIGH AND LOW OF THE DAY
Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT.
ENTRIES AND EXITS
I have added a moving average to spot high probability setups, thus avoiding entering any positions against the trend. The moving average we will be using is 55-EMA on the hourly chart. All you need is to identify the trend using the EMA on the hourly chart, then switch to 5-minute time frame to enter either buy at the Asian High or sell order at Asian Low (this system will usually yield at least 10 pips for you):
Buy Order
- 55-EMA on the hourly chart is on uptrend mode
- Set the buy order at the Asian High Ask Price
- Set the stop-loss of 30 pips away from the Asian High
- Set the first targeted profit at 15 pips
- Set the second targeted profit at the next mid-pivot price level or the next pivot point
- 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 if it closed lower than the nearest pivot point
Sell Order
- 55-EMA on the hourly chart is on downtrend mode
- Set it at the Bid Price at the Asian Low
- Set your stop-loss of 30 pips away from the Low
- Set the first target profit at 15 pips and the second target profit at the next mid-pivot price level or the next pivot point
- 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 if it closed higher than the nearest pivot point
Pairs to Trade
- GBPUSD
- works on other pairs but do try it out with different SL and TP.