I don't have a lot of time right now but I wanted to answer Offshore with a question or three for now and then after a couple of hours we can discuss the answers.
Out of all the pairs, which ones moved the most during Asia?
Which pairs have the most levels stacked up near the daily open? the previous day high/low?
Is the daily open stronger or weaker than the previous day high or low?
If price is within only a few pips of the daily open for a long time is the signal stronger or weaker?
These are just a few of the questions you need to quickly ask before choosing your pairs. I disagree that you should only take one. I whole heartedly suggest taking one euro pair and one pound pair when trading levels. Break your risk in half and spread it over two pairs. Sometimes it will be safer to trade one yen and one dollar. There is more but I am busy with some business and will return in two or three hours.
I did not trade last night but if I had I will say that I would have chosen to sell GJ at the previous day high and sell EU at the previous week low. I would have killed the EU short at the previous day low due to the news bar and the speed of the move. I probably would have longed it there because there was absolutely no follow through, it was a classic stop run with a news catalyst. GJ profit would have been taken at the daily open line. GJ had double strength at the previous day high, why? Previous week low was the first thing hit on EU and it is a weekly level so no brainer there.
A few things to think about.
Out of all the pairs, which ones moved the most during Asia?
Which pairs have the most levels stacked up near the daily open? the previous day high/low?
Is the daily open stronger or weaker than the previous day high or low?
If price is within only a few pips of the daily open for a long time is the signal stronger or weaker?
These are just a few of the questions you need to quickly ask before choosing your pairs. I disagree that you should only take one. I whole heartedly suggest taking one euro pair and one pound pair when trading levels. Break your risk in half and spread it over two pairs. Sometimes it will be safer to trade one yen and one dollar. There is more but I am busy with some business and will return in two or three hours.
I did not trade last night but if I had I will say that I would have chosen to sell GJ at the previous day high and sell EU at the previous week low. I would have killed the EU short at the previous day low due to the news bar and the speed of the move. I probably would have longed it there because there was absolutely no follow through, it was a classic stop run with a news catalyst. GJ profit would have been taken at the daily open line. GJ had double strength at the previous day high, why? Previous week low was the first thing hit on EU and it is a weekly level so no brainer there.
A few things to think about.