How to trade the New York open session?

How to trade the New York open session?

Aug 16 • Forex Trading Articles • 842 Views • Comments Off on How to trade the New York open session?

For trading the New York-US Forex session, you can use a trading system called the New York Breakout Forex Trading Strategy. The New York Forex Session is the second largest forex trading session in the currency market and operates 24 hours daily.

In this guide, we will discuss in detail what New York Breakout Forex Trading Strategy is all about and how you can start trading in this session.

Trading rules to follow

  • For the USD major pair, you should use a 15-minute chart. In addition, this can also apply to the GBPUSD and EURUSD.
  • A vertical line should be drawn on the chart at 7 am Eastern Standard Time
  • Draw a horizontal line between the vertical lines between the bars/candles. In between the vertical lines, draw the horizontal line towards the low of the bars/candles.
  • You need to buy a stop pending order of about 1-2 pips above the higher point. The sell stop pending order should also be placed below the low point.
  • Wait for a few seconds for the breakout to take place. And once it happens, you have to cancel the remaining pending order.
  • You can place the profit target of 50 pips or even more than that. 

Table of New York session pip ranges of major currency pairs:

PairsNew York
EUR/USD77
GBP/USD68
USD/JPY34
AUD/USD68
NZD/USD62
USD/CAD67
USD/CHF56
EUR/JPY72
GBP/JPY77
AUD/JPY71
EUR/GBP50
EUR/CHF46

In general, pip values are calculated by averaging past data. Market conditions and liquidity can affect the value of these, and therefore they are not absolute. Because the morning session overlaps with the European session, you will experience high liquidity.

Volatility and liquidity will disappear almost instantly after the market closes in Europe in the afternoon.

Advantages

  • It instantly stops you from any sort of overtrading. It generally requires one trade per day which is equal to 5 trades a week.
  • If you are on a day job, you can trade on this strategy session and simply walk out. There is no need to wait and set up trading
  • A unique forex trading trend that starts from the UK and continues to take place even in the New York US trading session.
  • You are about to earn a huge profit if the high and low distance is less than 60 pips.
  • No need to use any forex indicator.

Disadvantages

  • Not profitable if the distance between the high and low is more than 60 pips.
  • As a beginner, you should be moving ahead to aim at a profit target of 2-30 pips and not more than that.

Bottom line

Regarding more New York Open Session, there are just 9 bars/candles within a 15-minute chart between 7 am and 9 am. If the price cannot break the low/high, then it is known as a ranging market.

You should cancel all your remaining orders in the pending line and start trading the next day. Signals are just valid for the current day. The next day, you have to once again wait for 7 am-9 am candles to repeat the whole process.

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