By Krystal Comber, Founder SlickTrade.net
If you like to trade, but your schedule doesn't permit you to trade during the daytime, here's a strategy you can execute after dinner and take profit before bed time.
Almost every night, the EUR/JPY behaves quite predictably, and if you can draw support and resistance lines, it can greatly enhance trading consistency.The rules for trading the EUR/JPY during the Asian session are quite simple:
- Select the EUR/JPY currency pair with the 11pm expiry.
- At 8:00pm EST, draw horizontal lines at the highest price (resistance) and the lowest price (support) between 6-pm-8pm on the chart for the EUR/JPY.
- Switch over to 15 or 30 minute charts.
- Check to make sure there any news occurring on the EUR or JPY from 8pm – 11pm EST
- For a SELL – After 8pm, if the price breaks through the low price level – Choose a SELL on the closest strike price available near upper (resistance) line. You can place a market order if you want your order filled immediately, or you can place a working/limit order if you want to adjust your risk/reward.
- For a BUY – After 8pm EST, if the price breaks through the high price level Choose a BUY on the closest strike price available near the lower (support) line. You can place a market order if you want your order filled immediately, or you can place a working/limit order if you want to adjust your risk/reward.
- That’s it! Price is normally tested heavily between 9pm – 10pm EST –You may wish to walk away during this point and come back around 10pm -10:15pm EST.
- Always pay attention to the trend direction and news. If the market is sideways and staying within the high and low range you may want to avoid taking the trade. This is why I like to watch the Keltner Channels and
Fisher Transform on ThinkorSwim (TOS) or the EMAs and Ichimoku cloud on the Nadex charts.
Let's take a look at last night's trade
6:00pm - 8:00pm EST: The EUR/JPY established a HIGH at 134.443 and a LOW at 134.243. Support and resistance lines were drawn at these levels.
8:00pm - 11pm EST: The EUR/JPY broke through the support line at 8:00pm, triggering a SELL at 134.40, which was the closest strike price to the upper resistance line. The following pending order was placed at 8:06pm:
Contract: EUR/JPY >134.40 (11PM)
Expiration: Mon Feb 09 23:00:00 EST 2015
10 Contracts were sold, with a maximum risk of $650 and a maximum reward of $350.
The market continued moving downward until 9:00, where it ground back up to the mid-range between the support and resistance lines. From there it chopped sideways until expiration. This trade was briefly challenged by a bullish candlestick at 10:20pm, before it sold off and expired in the money.
The contracts settled in the money at 11:00pm EST, yielding a gross profit of $350, less $18.00 in exchange fees for a net profit of $332.00.About Krystal Comber:
Krystal is the founder of SlickTrade.net.
SlickTrade provides live trading rooms, signals and setups for Nadex, IG Group and Forex traders. Krystal provides the following services:
- Video tutorials for trading with Nadex
- Winning strategies with detailed instructions
- ThinkorSwim (TOS) workspace setups and indicators
- Live trade signals
- A private Facebook group and chat group
- A personalized online trading journal that helps you track your trading activity
- Live support
For a Complete Explanation of the EUR/JPY Asian Session Click Below:
If you would like to learn more about Nadex, or how to trade Binary Options, please check out our free video library and learn why this may be an interesting new way for you to diversify your trading portfolio.
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The Trading Pub Team