The Right Trading Strategies for Each Session

One fact about the forex market is that it never closes. Although the market is open 24 hours a day, 5 days a week, and 4 weeks a month, the conditions in the market are always different. Today's prices may be offered lower, while the next day prices may be offered higher.

Support and Resistance Strategy for the Asian Session

In general, the prices offered in this session are fewer than in other sessions. By observing the generally low price offers, traders can use their strategies to achieve profits when those prices are offered. If the price offers are small, then often the price does not move too much. Especially if it is in the support or resistance area, the price sometimes returns to its original movement.

Therefore, understanding the sessions is necessary to know when the strategies you use in trading can be utilized. The Asian session is one of the slowest movements compared to the others. For this reason, support and resistance strategies need to be used to limit the market's movement and capture profit opportunities in the Asian session.

Breakout Strategy for the European Session

At 07:00 UTC, the movement in the European session is quite significant. The liquidity of the prices being traded is very high. Price volatility sometimes increases as well. In this market, many people consider the European session to be the heart of the forex market. Because the movements are very large and trends will form quickly.

What is most noticeable is that liquidity starts to come in right at 07:00 UTC. This is when the London market opens, and large-scale transactions are being conducted by people all over the world. London is the largest forex market center, bringing the largest liquidity as well. This can be seen in several major currency pairs such as EURUSD, GBPUSD, and others.

In this session, it is important to be observant in anticipating the market fluctuations that can sometimes be unpredictable. Support and resistance in this session may be broken more easily, leading to a new trend. From here, the strategy that can be used is the breakout strategy. The Breakout Strategy can create more profits by taking advantage of trend breakouts caused by large-scale transactions worldwide. By applying breakout trading, traders usually find it easy and quick to gain profits after the London market opens.

Breakout and Support Resistance Strategy for the American Session

At 12:00 UTC, the American market opens. The liquidity offered in this session is also quite large, even capable of moving the market by hundreds of points. At the opening of the American market, the European session has not yet closed, resulting in a buildup of transactions that further increases price volatility, making the movements even more intense.

In the previous session, you could only utilize the breakout strategy. Now you can use two strategies simultaneously, namely breakout and Support Resistance (SR). It is important to note that at the opening of the American session, the price movements will resemble those of the London session until 15:00 UTC. From this opening, you can take advantage of the breakout strategy. After 15:00 UTC, the prices will resemble those of the Asian session. At that time, you can apply the SR strategy in your trading.