This is a price action trading system called the Asian Session High Low Breakout Forex Trading System and it is a forex trading system designed to capture the breakout of the high or low of the Asian Trading Session.
Generally speaking, the the Asian Trading session has less trading volumes compared the UK and the US trading sessions. Therefore during the day, it is not actively traded resulting in a narrow trading range in the Asian Session.
But when the UK trading session starts, price breaks out from this narrow Asian Trading Range.
So the rule of the Asian Trading session is simply to place two opposite pending orders on both sides of the high and the low of the asian trading session and if price breakouts in one direction, one of those two pending orders is going to get activated and you’ll be in a breakout trade.
What You Need
- A Forex Trading Sessions Indicator
- Only trade currency pairs that have a trading range of less than 40 pips during the Asian trading session. If a currency pair has a trading range of more than 40 pips, this decreases your risk:reward outcome so you must not trade it.
Trading Setup And Rules
- Once you upload the Trading Sessions Indicator into your MT4 chart, you switch to at 15, 30 or even 1 hr timeframe.
- You will See 3 colored boxes on your chart, green, dark red and blue. These indicator the 3 major forex trading sessions. Green is Asian trading session, dark red is UK/Europe Trading Session and Blue is US trading session
- What you need to do is when the Asian session ends, you need to identify its highs and low.
- Then place a buy stop pending order 2 pips above the Asian trading session’s high and place a sell stop order 2 pips below the Asian trading session’s low.
- For stop loss, place it them 2 pips on each side of the high/low.
- For take profit target, aim for a risk to reward ratio or 1:2. For example, if the Asian trading range is 30 pips than aim for 60 pips profit target.
Here are examples of buy setups:
Disadvantages of The Asian Session Breakout Forex Trading System
- choppy markets can be a problem
- a high trading range is not good for trading because less chance for you to get your 1:2 risk to reward ratio
- if you are trading USDJPY, it does move much more than than other during the asian session so anything above 40 pips range on this pair then don’t trade the breakout at all. Best thing is to back off.
Advantages of The Asian Session Breakout Forex Trading System
- A very simple price action breakout trading system easy to understand and implement.
- achieving your 1:2 risk to reward is very easy if price breaks out during the UK session and trends nicely.
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