The Forex strategy for New York trading sessions is a simple trading strategy which you can use to trade New York market sessions more profitable.
The strategy is designed to trade breakouts on the moving average lines.
We wait for a breakout of a support moving average line to sell or a breakout of a resistance moving average line to buy.
This is actually price action trading in its simplest form.
We intend to make headway with this strategy by exploiting the increased liquidity during this session, which leads to reduced spreads and therefore, lower trading costs.
Let’s take you through the important tips that you need to know to make the best out of this strategy.
Chart Setup
MetaTrader4 Indicators: sessions.ex4 (Default Setting), 2pbIdealMA.ex4 (Default Setting), 2pbIdeal3MA.ex4 (Default Setting), Moving Average of Oscillator.ex4 (Parameters Modified; Fast EMA=15, Slow EMA=29, MACD SMA=12)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour
Recommended Trading Sessions: New York
Currency Pairs: Any Pair
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Download the Forex Strategy For New York Session
Buy Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M30 Chart
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If after the start of the NY trading session, upon the expiration of our first candle, we still have conditions intact where the yellow 2pbIdeal3MA indicator line crosses & stays below the blue 2pbIdealMA custom indicator line (see Fig. 1.0), price is said to be pushed to the upside i.e. a trigger to go long on the forex pair.
- If the silver histograms of the Moving Average of Oscillator or OsMA Metatrader 4 indicator break and hover above the 0.00 horizontal level as illustrated on Fig. 1.0, bulls are said to be driving sentiments, therefore a buy signal will suffice.
Stop Loss for Buy Entry: Place stop loss below previous session low price.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If during the course of a bullish trend, the yellow 2pbIdeal3MA indicator line intersects the blue 2pbIdealMA custom indicator line, it is a trigger exit or take profit. Else an exit or take profit is advised at the close of the New York session (refer to Fig. 1.0).
- If the silver histogram of the OsMA forex indicator readjust to pop up below the zero signal level, it is a signal to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If after the start of the NY trading session, upon the expiration of our first candle, we still have conditions intact where the yellow 2pbIdeal3MA indicator line crosses & stays above the blue 2pbIdealMA custom indicator line as exemplified on Fig. 1.1, price is said to be dragged lower i.e. a trigger to go short on the designated currency pair.
- If the silver histograms of the Moving Average of Oscillator or OsMA forex indicator align below the 0.00 horizontal level as shown on Fig. 1.1, bears are said to be driving sentiments, therefore a sell signal will do.
Stop Loss for Sell Entry: Place stop loss above previous session high price.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during the course of a bearish trend, the yellow 2pbIdeal3MA indicator line intersects the blue 2pbIdealMA custom indicator line, it is a trigger exit or take profit. Else an exit or take profit is advised at the expiration of the New York session (checkout to Fig. 1.1).
- If the silver line of the OsMA forex indicator readjust to pop up above the zero signal level, it is a trigger to exit or take profit immediately.
Sell Trade Example: AUD/NZD (Australian Dollar / New Zealand Dollar), M30 Chart
Fig. 1.1
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Download the Forex Strategy For New York Session
About The Forex Technical Indicators Used
The sessions custom indicator is a technical tool that allows traders see the various market sessions using a colored visual representation on the chart window.
The 2pbIdeal3MA custom indicator is a modified moving average that smoothens price, thus spotting price change in a prompt manner.
The 2pbIdealMA custom indicator is an enhanced moving average that deploys a single price smoothening mechanism that allows it spot trend in a quick manner.
The Moving Average of Oscillator or OsMA is a tool that tries to spot overbought or oversold conditions by gauging how far an oscillator lies from its moving average.
Easy Installation
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