The Forex Sessions trading system is a profitable trading system that is wrapped around the Tokyo, Frankfurt and New York trading hours.
We’ll be gauging these sessions as a determinant for our buy/sell forex trading signals.
Most importantly, the core of this system is to watch the open and close of the Tokyo session (our first session), and use the information alongside other technical tools to forecast the market.
This forex system will help you determine when the most suitable sessions of the day are okay to trade.
It essentially breaks up trading into three important sessions as earlier stated.
Lets puts things into perspective using our well-groomed system.
Chart Setup
MetaTrader 4 Indicators: Auto_Sessions_v_1.9.ex4 (Default Setting), var-moving-average.ex4 (Inputs Variable Modified; G=1.2), tsv-bullish-bearish.ex4 (Inputs Variable Modified; period=14, CountBars=3000000)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour
Recommended Trading Sessions: Tokyo, Frankfurt and New York
Currency Pairs: Majors
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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 closes higher during the Tokyo session (denoted by the light green colored section on the activity chart) as indicated on Fig. 1.0, we can go bullish on the open of the Frankfurt session.
- If the green dotted sienna line of the var-moving-average Metatrader 4 forex indicator pops up at the open of the Frankfurt session (see Fig. 1.0), price is said to be driven to the upside i.e. a trigger to go bullish on the desired forex pair.
- If the blue histograms of the tsv-bullish-bearish indicator pops up within the indicator window as depicted on Fig. 1.0, price is said to be pressured higher i.e. a trigger to go long on the selected forex pair.
Stop Loss for Buy Entry: Place stop loss below session box support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the var-moving-average indicator pops up a red dot on its sienna line while a bullish trend is ongoing, bulls power is said to be diminishing, therefore an exit or take profit is advised.
- If a red histogram pops up within the indicator window during the course of a bullish trend, bulls power is said to be weaning, hence 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 closes lower during the Tokyo session (denoted by the light green colored section on the activity chart) as shown on Fig. 1.1, we can open sell positions on the open of the Frankfurt session.
- If the red dotted sienna line of the var-moving-average Metatrader 4 forex indicator pops up at the open of the Frankfurt session (see Fig. 1.1), price is said to be pushed lower i.e. a trigger to go bearish on the designated currency pair.
- If the red histograms of the tsv-bullish-bearish indicator pops up within the indicator window as exemplified on Fig. 1.1, price is said to be pressured lower i.e. a trigger to go short on the forex pair of interest.
Stop Loss for Sell Entry: Place stop loss above session box resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the var-moving-average indicator pops up a green dot on its sienna line while a bearish trend is running, bears power is said to be halting, therefore an exit or take profit is recommended.
- If a blue histogram pops up within the indicator window during the course of a bearish trend, more bears are said to be exiting their positions in the market, hence an exit or take profit stance will do.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Auto_Sessions_v_1.9.ex4 is a technical tool that paints three critical market hours i.e. the Tokyo, Frankfurt and New York trading hours, making is easier for traders to know when a session start/ends.
The var-moving-average.ex4 or Var Moving Average Metatrader 4 Forex Indicator is a trend following indicator designed for die-hard trend followers.
The tsv-bullish-bearish.ex4 is an MT4 forex indicator that comes in the form of a histogram that is painted red or blue.
The observed colors of the histograms are used to define the plausible market trend for a currency pair of interest.