Session Trading

TIME AND PRICE THEORY

There is a specific time of the year, month, or day when the price will make a significant high/low (study seasonal tendencies)

Time and price theory are when price meets support/resistance at a specific time of the day that we anticipated high/low to be formed (Kill zones). When this unfolds, it will give us a strong confirmation when other tools confirm the setup.

For example, Monday, Tuesday, and Wednesday are high probability days for a high of the week or low of the week to be formed but look closely for Tuesday and Wednesday London open.

KILL ZONES

We need to understand that there are specific hours of the day that high/low of the day is likely to form; understanding this will help you to know when you want to look at Price setup and when not to. Below are specific hours or Kill zone that will be used to hunt for trades.

ASIAN KILL ZONE: 23:00 – 03:00 GMT - 4:30 AM to 8:30 GMT

LONDON OPEN KILL ZONE: 07:00 – 10:00 GMT

LONDON CLOSE KILL ZONE: 15:00 – 18:00 GMT

NEW YORK OPEN KILL ZONE: 12:00 – 15:00 GMT

Allow up to 1 hour before and after the kill zones timings because sometimes setup will come 1 hour early or 1 hour before and because of Daylight Saving Time.

Monitor 4 hours after 05:00 or New York midnight; there is a high probability of a high/low of the day to form within those 4 hours.

You will see high/low of the day forming most of the time around 09:00 – 09:30 GMT

• 10:00 GMT Most of the time, expect to see a Judas Swing or Divergence above/below the 07:00 – 09:00 GMT price that will form a swing high/low to the direction of the market, for example, if you are in a sell trade you will see a move back to the higher of the day that will form a swing high and continue down. Mark the opening price of 10:00 GMT and most 45 of the time; this price will set up New York Optimal Trade Entry in sync with the HiPricew formed in London. In New York, most of the time price will trade back to 07:00 Price and give you optimal trade entry. When you don’t see a Judas swing in London, expect the Judas to form at 10:00 GMT.

• For a sell trade, most of the time high of the day will form in the first 4 hours after 05:00 GMT (London open kill zone). Still, the ideal time window for a high to form is 0Price– 10:00 GMT, and a low of the day will form around 15:00 – 16:00 GMT and vice versa for a buy trade (if you were selling from London open kill zones, you need to close trades around 15:00 – 16:00 GMT.

• Typically, the daily high or low is formed in a sharp counter-trend direction on that day. (Judas Swing/Stop hunt)

• 05:00 GMT is the beginning of the true trading day and the end of the Asian range

• 19:00 GMT is the end of the true trading day

• 20:00 to 00:00 GMT is Central Bank Dealing Range or the Flout

• 00:00 to 05:00 GMT is the Asian Range

• 10:00 – 11:00 Most of the time, you will see a pause in price after the London move or a Judas swing that will make a fractal to the direction of the market in the lower time frame

• 12:20 GMT (20 minutes after the beginning of the New York kill zone) is when futures contracts begin trading

• Start looking for New York trade setups from 12:20; for a buy trade, you need to buy 10pips below the 12:20 Price, and for a sell trade, you need to sell ten pips above the 12:20 price for New York trade

ASIAN SESSION

The Asian Range determines the directional bias or likely direction for most London & NY sessions. Where the money is positioned in Asia dictates the profit release on the trading day. Typically, Asian session trades counter the NY session direction in a corrective bounce.

Although the volatility is the lowest in this session, this can provide an ideal “learning environment” for new traders.

Not to mention long-term position trading can and typically find entry signals in the Asian session… thus lending well to Day job traders.

There is a vacuum of institutional sponsorship in this trading session compared to the London and New York sessions, with Yen Pairs consuming most of the volume.

News releases from Australia, Japan, and China can impact this session.

The ideal range for the Asian session is 50 pip; if the range is more than 50 pip, look for Optimal trade entry inside the Asian range; in this scenario, you won’t see a Judas Swing outside the Asian Range.

Asian Session Trading

The Asian session will trade counter New York session direction. Mark the important support and resistance levels and wait for reversal before or during the London session. Even in bull trending market environments, the Asian session will engineer a decline that often provides the swing setup for London open trading. Even in bear trending market environments, the Asian session will engineer a rally that often provides the swing setup for London open trading.

Anticipate optimal trade entry buy to form in the Asian session when the price trades down to support (wait for it to bounce off at least 20 pips from support and start looking for OTE)

Anticipate optimal trade entry sell to form in the Asian session when the price trades up to resistance (wait for it to bounce at least 20 pips from resistance and start looking for OTE)

Asian Range Trading: Mark the High and low of the Asian range and wait for the Price to take liquidity either above or below the range.

LONDON SESSION

LONDON OPEN TACTIC

London Open Kill zone: 06:00 – 10:00 GMT (Ideal time is 07:00 – 09:00 GMT)

When Considering the 24-hour trading day in forex, the largest range of pips is without a doubt found in the London Session

London Open posts the high/low of the day

The Lion’s portion of the Daily Range is put in during the London and New York sessions.

It is possible to establish an intraday position and catch “The London Express” "London Express is a Swing or a true move that lasts 4-8 hours). This is essentially the daily Range on pips and quite profitable.

London Open sees stop raids or false breakouts.

Raid Stops, then shoots for Support.

The goal is to dial in on the Low of the day to go long from.

The first objective after London Open is to raid Asian High stops. 


After stops are removed, the price moves lower, testing key support levels & OTE.

From London Open to Close or 18:00 GMT, the Daily Range is put in, and you should not use tight trailing stops. 


Buy 05:00 – 05:30 price, below the opening price below, and Asian Session Swing Low.

In Bullish conditions, you may leave a portion of the trade beyond 18:00 GMT for short-term overnight trades that can pay well with only 10-20% of the original position.

Raid Stops, then shoot for Resistance.

The goal is to dial in on the day's High to go short from.

The first objective after London Open is to raid Asian Low stops. 


After stops are removed, the price increases, testing key resistance levels & OTE.

From London Open to Close or 18:00 GMT, the Daily Range is put in, and you should not use tight trailing stops. 


Sell above 05:00 – 05:30, above the opening price, and Asian Session Swing High.

In Bearish conditions, you may leave a portion of the trade beyond 18:00 GMT for short-term overnight trades that can pay well with only 10-20% of the original position.

When to Avoid London Open

Interest rate announcement

Key Speeches

Holiday trading

Global and Economic events

Weekly Range objective achieved

If the Asian session range is over 50 pips, wait for the New York trade to be safe.

LONDON CLOSE/LATE NEW YORK CLOSE (REVERSAL MARKET PROFILE)

London Close kill zone: 15:00 -17:00 as late as 18:00 GMT

Generally, the market will look to encounter profit-taking around 16HRS GMT as London traders close their trading day and NY traders are taking lunch. 


High/Low of the day can be formed in London close also.

LONDON CLOSE TREND TRADE (Classic reversal market profile)

Trend trade entry to get in sync with the daily trend or long-term price swing. This will happen if the price is trading to a higher time frame optimal trade entry

This trade will form the high or low of the day and above/below the London open high/low

Look for Higher time frame support and resistance level; this will happen if the price doesn’t trade to support and resistance in London open

For the London close trend trade sell, the day will start as a classic buy day and reverse in London Close/Late New York and the price will trade below London low

For the London close trend trade buy, the day will start as a classic sell day and reverse in London Close/Late New York and the price will trade above London high

Newyork Session

New York Open Kill zone: 12:00 – 15:00 GMT

High or Low of the day can be formed in New York open too

The New York session is the easiest one to trade as the London session high/low is already in place

Consider the high time frame Premise

Most of the time, this session will trade in sync with a higher time frame direction.

Consider London and Asian session highs and lows (price might bounce off these levels)

Most of the time, the price will trade in the direction of the move that was established in the London session.

Consider the 5:00 – 5:30 GMT price level, as prices will most likely retrace to these levels and will continue in the intended direction.

Expect a pullback to the high or low that was formed in London; most of the time, the price will retest these levels as they may act as a liquidity pool.

Monitor what happened in the London session

Buy below the 10:00 and 12:20 GMT open price.

Sell above 10:00 and 12:00 GMT open price.

Avoid New York Open setups If D1 swings are maturing into key support/resistance levels.