Best forex pairs to trade during asian session

Trading the London Session: Guide for Forex Traders


best forex pairs to trade during asian session

The London forex session is one of the most liquid trading sessions. Due to the high volume of buying and selling, major currency pairs can trade at extremely low David Bradfield. While the Forex market is considered to be a hour market during the working week, the trading sessions continue to be broken down into the Asian, European and North American sessions. Can anyone tell me which pairs are the best specifically to trade in the Asian session? AUD/JPY springs to mind as logical, but can anyone go beyond that?

When Can You Trade Forex: Tokyo Session -

Top 5 things to know about the Tokyo session The Tokyo forex session is typically known to adhere to key levels of support and resistance due to the lower liquidity and volatility experienced. The chart below shows this effect with the Asian session depicted in the smaller, best forex pairs to trade during asian session, blue boxes, while the London session and US session are depicted in the larger red boxes.

The image below provides an indication of how volatile currencies can be throughout the day. The chart shows higher peaks more volatile movements outside of the Asian session. Combining this with signals from indicators further increase the probability of entering a good trade. The slow nature of the market can potentially allow for more thorough analysis of risk and reward. Essentially, it is easier for traders in the Asian session to spot levels of support and resistance as they are generally well-defined and coincide with the trading range.

More liquidity instantly becomes available and traders often witness breakouts from established trading ranges. What currency pairs are best to trade during the Tokyo session? The best currency pairs to trade during the Tokyo session will depend on the individual trader and strategy employed. Traders looking for volatility will tend to trade Japanese YenSingapore dollar, Australian dollar and New Zealand dollar crosses. How to trade ranges during the Asian session Range trading is particularly suited to the Asian trading session as support and resistance levels are adhered to more frequently than during the more liquid London and US sessions, best forex pairs to trade during asian session.

The two most common strategies in the Tokyo forex session involve breakouts or range trading. Below is an example of a short position when trading ranges but the same logic can be applied to long positions: Trade set up: One way to trade ranges is to look for sell signals when price trades near resistance while setting an initial take profit level near the bottom of the range. Traders will often enlist the help of oscillators such as the RSI and Stochastic indicators to provide buy and sell signals.

The Asian session takes place in the blue blocks on the chart. Entry point: Using this particular strategy, traders should be looking for signals to buy when price approaches support and to sell when price approached resistance. The stochastic indicator displays when the market is in overbought territory, providing a sell best forex pairs to trade during asian session circled in blue.

To get further confirmation, price has reached the level of resistance and this presents the opportunity to enter the short trade. Stop loss: A Stop can be placed above the level of resistance as historically this is the level that prices have bounced off of. Take Profit: Professional traders always look for more pips in their favor, compared to what they could potentially lose if the trade moves against them. This is referred to as a risk to reward ratio and should be at least With this said, if the market moves from the top of the range to the bottom of the range the trader is targeting 80 pips while risking 30 pips, representing a Range trading is likely to be less effective when the London and US sessions flood the market with liquidity.

The chart reflects this, with the large breakout towards the downside before recovering back within the channel. Range traders make use of stops and limits to maintain their exposure within the channel, best forex pairs to trade during asian session. Asian breakout strategy The Asian breakout strategy aims to take advantage of sudden sharp movements in price when the London trading session comes online at GMT ET.

The influx of liquidity can lead to breakouts that traders can anticipate. On a best forex pairs to trade during asian session timeframe five — minute chart traders can wait to see a candle close above or below the trading range witnessed in the Asian session.

If price breaks below the range, traders can enter the trade placing a tight stop at the recent swing high. When setting a target level, traders can take in to account the number of pips from the top to the bottom of the trading range range and place a target an equal distance away from the entry level in this example 80 pips away.

Further reading to navigate forex trading sessions Learn more about the fast paced London FX trading sessionor find out when the US trading session is at its most volatile. Just getting started on your trading journey? Get to grips with the basics of forex trading in our New to Forex trading guide.

It is beneficial to know the characteristics observed throughout the trading day. Read our summary of the major FX trading sessions for a full overview of the hour forex market. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

Take a free trading course with IG Academy Our interactive online courses help you develop the skills of trading from the ground up. See courses Live, interactive sessions Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics.


The Asian/Tokyo Trading Session | ForexTips


best forex pairs to trade during asian session


The Asian trading session is one of t he best time of day to trade forex, as explained in the DailyFX Traits of Successful Traders Richard Snow. The EUR/JPY, GBP/JPY, AUD/JPY and GBP/USD are among the most volatile currency pairs during the Asian session. These are the pair on which risk-tolerant traders should keep an eye on during the Asian session. Japanese exporters are known to participate in the forex market during this session to repatriate their overseas earnings from Europe, USA and Australia, creating high pressures on the Author: Forextips. Jul 31,  · Active Pairs during New York Session 8 replies. What to do during the Asian session 1 reply. Which pair move more during US session compare to london session? 2 replies. Best pairs trade during evening 4 replies. Most Acitive Pairs During London Session 2 replies.