Timing explained:
Obviously, when we're trying to make money off trading, we want to capture those times of the day, when there will be momentum to bring price from A to B.
As it relates to the dollar (specifically EU, GU), we have to take note of a few windows of opportunity, when there would be enough liquidity for the daily range to develop.
Price won't move straight up or straight down like we've already said so many times on here. The daily open is at midnight, yet for me, there are 2 sessions: morning session & afternoon session. The morning session starts at 6 am GMT+2 and ends around 1pm GMT+2. It coincides with Frankfurt open, London open, Tokyo and Sydney close. There is hence a lot of momentum during that time. Usually, after 6am the high of the day (HOD) or the low of the day (LOD) is set. Sometimes it takes a very short while, sometimes it can extend past London open, but no later than 1pm GMT+2. Naturally, we want to trade away from the HOD or LOD. I posted a diagram earlier with the daily range and it how it looks on intraday timeframes and I said we want to be buying below the daily open and selling above the daily open.
As for the Asian session, I keep an indicator to denote it simply because I use it for my morning entries, I will often look for a return inside the asian range. There are small-TF supply and demand areas within it. The Asian Range goes from midnight to Frankfurt open for me.
Now, regarding the second session I said, it's the afternoon session. It goes from 2pm to roughly 7pm GMT+2. Usually, that's the window where we get all the US data, we have New York open at 4:30 pm GMT+2, we have sensitivity an hour before that, euros coming back from lunch around the beginning of the window etc. In a nutshell, there will be momentum here again.
Now what will happen on most days is, price will set a HOD or LOD in the first session, travel from A to B and go into consolidation when it ends at 1om. Slowly, it will begin to move countertrend and at around 3 o'clock in the afternoon it will resume the London direction. So in my book, that's a trend continuation.
HOWEVER, and this is why it's important to have good awareness, the afternoon session may be a reversal if price has traveled to a key level during the morning session. In that case, we want to take profit before that happens.
Usually, the daily range will be fulfilled by 7-8 pm GMT+2, and it will pull back slightly from there. At 10pm, there is usually a small return back to the original direction and midnight is the start of the new day.
Obviously, when we're trying to make money off trading, we want to capture those times of the day, when there will be momentum to bring price from A to B.
As it relates to the dollar (specifically EU, GU), we have to take note of a few windows of opportunity, when there would be enough liquidity for the daily range to develop.
Price won't move straight up or straight down like we've already said so many times on here. The daily open is at midnight, yet for me, there are 2 sessions: morning session & afternoon session. The morning session starts at 6 am GMT+2 and ends around 1pm GMT+2. It coincides with Frankfurt open, London open, Tokyo and Sydney close. There is hence a lot of momentum during that time. Usually, after 6am the high of the day (HOD) or the low of the day (LOD) is set. Sometimes it takes a very short while, sometimes it can extend past London open, but no later than 1pm GMT+2. Naturally, we want to trade away from the HOD or LOD. I posted a diagram earlier with the daily range and it how it looks on intraday timeframes and I said we want to be buying below the daily open and selling above the daily open.
As for the Asian session, I keep an indicator to denote it simply because I use it for my morning entries, I will often look for a return inside the asian range. There are small-TF supply and demand areas within it. The Asian Range goes from midnight to Frankfurt open for me.
Now, regarding the second session I said, it's the afternoon session. It goes from 2pm to roughly 7pm GMT+2. Usually, that's the window where we get all the US data, we have New York open at 4:30 pm GMT+2, we have sensitivity an hour before that, euros coming back from lunch around the beginning of the window etc. In a nutshell, there will be momentum here again.
Now what will happen on most days is, price will set a HOD or LOD in the first session, travel from A to B and go into consolidation when it ends at 1om. Slowly, it will begin to move countertrend and at around 3 o'clock in the afternoon it will resume the London direction. So in my book, that's a trend continuation.
HOWEVER, and this is why it's important to have good awareness, the afternoon session may be a reversal if price has traveled to a key level during the morning session. In that case, we want to take profit before that happens.
Usually, the daily range will be fulfilled by 7-8 pm GMT+2, and it will pull back slightly from there. At 10pm, there is usually a small return back to the original direction and midnight is the start of the new day.
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