If you would observe a forex pair for a considerable amount of time you would notice that the forex markets move in cycles. You would note how the market alternates strong expansion phases with slow contraction phases. You would notice how the market moves strongly in one direction for quite some time, then reverse for a few hours. If you have spent enough time observing a currency pair, you could even come to a point where you have an idea what times of the day the market would move with momentum and what time of the day the market would slow down.
This is because the underlying currencies move according to the timing of the markets it is used in. For example, the GBP and EUR pairs would most likely be more active whenever the European and British markets would open. These currency pairs would also tend to be more silent whenever these markets close.
One of the cycles that many traders could observe would be the relationship between the London and New York sessions. These two markets are the two biggest markets, with the London market being the largest. Any significant move that starts from these markets would ripple off to the next session.
Often, the New York session would follow the trend direction established during the London session. Unless there is a significant support or resistance that is in the way of the trend, a major news that does not support the trend comes out, or a major bank initiates a transaction that would cause the market to reverse, the trend that is established during the London session would most likely carry on to the New York sessions.
New York Sunrise Forex Day Trading Strategy is a strategy built around this assumption. It makes use of a few indicators to help us time the market and read the current trend direction.
The Sessions indicator was developed to help traders identify the major markets that are currently open. It does this by plotting a box that covers the candles of a market session.
It plots a forest green box to indicate the Asian session, a purple box to indicate the European session, and a dark blue box to indicate the US session.
These indications of which market is currently open could help traders make a trade plan based on the current market timing.
2PB Ideal 3MA
The 2PB Ideal 3MA indicator is a custom moving average indicator.
Most moving averages tend to be susceptible to whipsaws that occur during choppy markets. This is the reason why traders who indiscriminately use moving averages to enter and exit trades suffer from losses whenever the market starts to be become too choppy.
The 2PB Ideal 3MA indicator is smoothened out quite aggressively. This creates a moving average line that tends to be less susceptible to choppy markets and is very reliable as a trend direction filter.
Moving Average of Oscillator
The Moving Average of Oscillator (OsMA) is a trend following oscillator which based on the Moving Average Convergence and Divergence (MACD).
The MACD is another standalone oscillator which computes the MACD line as the difference between a faster and slower Exponential Moving Average (EMA) line. It then plots a signal line which is basically a moving average based on the main MACD line. Trade signals are then generated whenever the main MACD line and the signal line crosses over.
The OsMA on the other hand basically plots the difference between the main MACD line and the signal line. This simplifies the process of identifying the trend direction and spotting trend reversals since traders would only have to identify whether the OsMA line is positive or negative.
Trading Strategy
This trading strategy is a strategy that attempts to trade on the continuation of the market momentum established during the London session. It generates trade setups at the beginning of the New York session continuing the direction of the London session.
The 2PB Ideal 3MA indicator will be used to identify the trend direction. This is simply based on the location of price action in relation to the moving average line, as well as the slope of the line.
We then wait for the first few candles of the New York session to take shape.
Trade setups are considered valid if price action shows indication of continuing the trend established on the London session. On top of this, the OsMA indicator should confirm that momentum is aligned with the trend indicated by the 2PM Ideal 3MA indicator.
Indicators:
- Sessions
- 2pbIdeal3MA
- Moving Average of Oscillator
- Fast EMA: 15
- Slow EMA: 29
- MACD SMA: 12
Preferred Time Frames: 15-minute chart
Currency Pairs: USD pairs
Trading Sessions: Tokyo, London and New York sessions
Buy Trade Setup
Entry
- Price action should be above the 2PB Ideal 3MA line.
- The 2PB Ideal 3MA line should slope up.
- Price action during the New York open should indicate a bullish trend continuation.
- The OsMA bars should be positive.
- Enter a buy order on the confirmation of these conditions.
Stop Loss
- Set the stop loss on the support below the entry candle.
Exit
- Close the trade at the end of the New York session.
Sell Trade Setup
Entry
- Price action should be below the 2PB Ideal 3MA line.
- The 2PB Ideal 3MA line should slope down.
- Price action during the New York open should indicate a bearish trend continuation.
- The OsMA bars should be negative.
- Enter a sell order on the confirmation of these conditions.
Stop Loss
- Set the stop loss on the resistance above the entry candle.
Exit
- Close the trade at the end of the New York session.
Conclusion
This trading strategy is a trend continuation strategy which in itself is an effective trading strategy. What makes it unique is that it incorporates market session timing as a focal point for its trade setups.
This strategy has the potential to produce huge profits because the London and New York sessions are some of the most active trading sessions.
Forex Trading Strategies Installation Instructions
New York Sunrise Forex Day Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
New York Sunrise Forex Day Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
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How to install New York Sunrise Forex Day Trading Strategy?
- Download New York Sunrise Forex Day Trading Strategy.zip
- *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Right click on your trading chart and hover on “Template”
- Move right to select New York Sunrise Forex Day Trading Strategy
- You will see New York Sunrise Forex Day Trading Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
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