The Asian Range Breakout Forex strategy is a trading system designed to capture solid breakouts during the Asian trading range.
To be frankly, forex traders do not like the Asian trading session for one reason only: when compared to the London and New York sessions, price does not move as much, thus resulting to less trade volume.
Considering the thin volume during the Asian trading session (meaning price stays within a narrow range), our profit outlook should be cut down to meet with such realities when setting targets.
The following set and buy/sell examples will give us a headway into trading this amazing forex strategy.
Chart Setup
MetaTrader4 Indicators: asian-breakout-range-indicator.ex4 (Default Setting), super-arrow-indicator.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: London
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If price opens and closes above the upper limit of the asian-breakout-range-indicator as shown on Fig 1.0, bulls are said to be driving price higher, as such a buy alert will suffice.
- If the lime upward pointing arrow of the super-arrow-indicator gets aligned fairly below the candlesticks as indicated on Fig. 1.0, price is said to be gaining momentum to the upside, therefore a buy signal is appropriate.
Stop Loss for Buy Entry: Place stop loss below the breakout box.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If price breaks below the lower limit of the asian-breakout-range-indicator during the course of a bullish trend, it is most likely that price is entering a bearish reversal phase, as such an exit or take profit will do.
- If the super-arrow-indicator pops up a red downward pointing arrow while a bullish trend is running, bulls power is said to be weaning, therefore an exit or take profit will suffice.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If price opens and closes below the lower limit of the asian-breakout-range-indicator as depicted on Fig 1.1, bears are said to be pushing price lower, hence a sell order will do.
- If the red downward pointing arrow of the super-arrow-indicator gets aligned slightly above the price bars as exemplified on Fig. 1.1, more sellers are said to be pushing price to the downside, therefore a sell signal is right.
Stop Loss for Sell Entry: Place stop loss above the breakout box.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price breaks above the upper limit of the asian-breakout-range-indicator while a sell signal is ongoing, more bears are said to be exiting their positions, therefore an exit or take profit stance is apt.
- If the super-arrow-indicator pops up a lime upward pointing arrow during the course of a bearish signal, bears power is said to be halting, therefore an exit or take profit will do.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The asian-breakout-range-indicator.ex4 is a technical indicator that is deployed in capturing the breakout of the high or low of the Asian Trading Session.
The super-arrow-indicator.ex4 is a trend following technical indicator that is built on a fast & slow moving average, relative strength index, Bollinger Bands, plus a bulls/bears power indicator.