Asian Session Forex Strategy For Metatrader 5

Trading in line with market sessions is an appreciable way of yielding better trading results.

It’s no longer a secret that trading sessions, along with the choice of strategy can hugely influence trading results.

This is as a result of the characteristics of certain forex market hours and trading sessions.

The Asian session is naturally the first to see market actions and it is unofficially represented by the Tokyo capital markets.

The Asian session is covered within the hours of 12 a.m. (GMT) to 8 a.m (GMT) and the Asian Session Forex strategy for Metatrader 5 seeks to trade within the duration.

Due to the session’s seemingly low volatility as compared to the European and US sessions, we would be adopting a range trading style for better performance.

Trade Setup 

MetaTrader 5 Indicators: Moving Average.ex5 (Parameters Modified; Period=16, Method=Exponential), SuperTrend_Dot.ex5 (Default Setting), Range weighted average MACD.ex5 (Default Setting)

Trade Style: Scalping & day trading

Trading Sessions: Tokyo

Currency Pairs: JPY related currency pairs

Platform: Metatrader 5 (MT5)

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Download the Asian Session Forex Strategy For Metatrader 5

Buy Trade Example: EURJPT, H1 Chart

Fig. 1.0

Trading Strategy Rules For Buy and Sell Trades Explained

Buy Entry

Enter a buy trade if the following trading conditions are met:

  1. The misty rose colored section represents the Asian session. Wait for the session’s open candle to close (candle 1) and enter a buy on the accompanying candle labelled “2” if all the linked conditions stay true.
  2. If price opens and closes above the blue line of the 16 EMA indicator following the close of candle labelled “1”, bulls are said to be pushing price higher (see Fig. 1.0), thus a buy alert will suffice.
  3. If the green signal dot of the SuperTrend_Dot custom indicator aligns below the candlesticks after the close of candle labelled “1” as depicted on Fig. 1.0, price is said to be pressured higher i.e. a trigger to go long on the designated currency pair.
  4. If the line color of the Range weighted average MACD custom indicator staysmedium sea green after the close of Candle “1” (refer to Fig. 1.0), it is a trigger to buy the designated forex pair.

Suggested Stop Loss for Buy Entry: Place stop loss below short-term support.

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions are met:

  1. If all conditions listed within the buy entry rules stay the same until the expiration of the Asian session, it is wise to exit or take profit and not extend trade off the end of the misty rose colored area.
  2. If while a bullish trend is ongoing during the Asian session, price opens and closes below the blue line of the 16 EMA indicator, it is a signal to exit or take profit at once.
  3. If while a bullish trend is ongoing during the Asian session, the SuperTrend_Dot forex indicator pops up a red signal dot above the candles, an exit or take profit is duly recommended.
  4. If while a bullish trend is ongoing during the Asian session, line color of the Range weighted average MACD indicator turns orange red, it is a signal to exit or take profit immediately.

Sell Entry

Open a sell trade if the following trading conditions are met:

  1. The misty rose colored section represents the Asian session. Wait for the session’s open candle to close (candle 1) and enter a sell on the accompanying candle labelled “2” if all the associated conditions stay true.

2 If the price opens and closes below the blue line of the 16 EMA indicator following the expiration of candle labelled “1”, bears are said to dragging price lower (see Fig. 1.1), thus a sell alert will do.

  1. If the red signal dot of the SuperTrend_Dot forex indicator aligns above the candlesticks after the close of the candle labelled “1” as shown on Fig. 1.1, overall market sentiment is said to be bearish i.e. a trigger to go short on the selected forex pair.
  2. If the line color of the Range weighted average MACD custom indicator staysorange red after the close of Candle “1” (refer to Fig. 1.1), it is a trigger to sell the forex pair of interest.

Suggested Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Suggested Exit Strategy/Take Profit for Sell Entry

Exit the sell trade if the following trading conditions are met:

  1. If all conditions listed within the sell entry rules stay the same until the expiration of the Asian session, it is expedient to exit or take profit and not extend trade away from the end of the misty rose colored area.
  2. If while a bearish trend is running during the Asian session, price opens and closes above the blue line of the 16 EMA indicator, it is a signal to exit or take profit forthwith.
  3. If while a bearish trend is running during the Asian session, the SuperTrend_Dot forex indicator pops up a blue signal dot below the candles, an exit or take profit stance is duly advised.
  4. If while a bearish trend is running during the Asian session, the line of the Range weighted average MACD indicator turns medium sea green, it is a signal to exit or take profit straightaway.

Sell Trade Example: EURJPY, H1 Chart

Fig. 1.1

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MT5 Trading Indicators Used For This Strategy

The 16 EMA is an exponential moving average that has its period set at 16 and reduces price lag by adding more weight to the recent price.

The SuperTrend Dot Metatrader 5 forex indicator is an enhanced version of the renowned Supertrend custom indicator by Olivier Seban.

It is purely a trend tool that replaces lines with dots and allows the display of previously hidden one-bar change of direction.

The Range weighted average MACD indicator was created by Gerald Appel as a technical tool that is able to deploy the range weighted average for its MACD calculation, while also using same for its signal line.

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