In the present world, the Forex market is highly liquid and the popular market. If you are in the Forex market you will able to earn a lot but still, it all depends on how you trade the market. If you cannot use technical strategies to trade the market then you might find it hard to trade the market. The top technical strategies will help you to trade well but it will be obviously based on your personality. There are many strategies that you can use to trade the volatile Forex market. With many changes in the world, the currency pairs bounce back and forth so the traders consider it as risks and off-risks so the traders should make decisions accordingly. Let us check out certain technical strategies.
The London breakout strategy
Asian session is the most illiquid marketplace. And also the serious trading begins before the London session starts. This is the quite time in the Forex market, the 24 hours currency cycle. What the traders look for is the volatility. The traders do keep tracks of the highs and lows from the Asian session to determine the “range” of the market. You will be able to find out what the Europeans are about to do today. Once you identify the breakout you will be directed to the right currency pair during the European trading session. The greatest opportunities which a trader gets from the London breakout strategy is during the volume of trades and the value of money that moves in the first few hours. The simple explanation is that the trades during the trend movement whether it’s upside or downside during the opening hours of London market.
How to close the trade
If you are fx trading using the London trading session then you should definitely close the trade at the end of the session. You should never wait for the changes even if you see that you have 10 pips to lose or to win, it does not matter, close the trade. You should not hope for few pips in the US trading, in the Foreign exchange market, it’s all about analyzing there is no place for hopes or prayers. The foreign exchange market works according to a system.
Why is the London trading strategy the best
The reason can be said in one word as –easy. It is the very simple price action strategy, you should simply sketch horizontal lines depending on the high and low, and you should analyze the 3 previous candlesticks of Asian trading session and based on the previous candlestick formation of the low volatile market you will have an idea for the direction of the breakout.
Summary: trading in the Forex market should be the well-planned system. You cannot just trade the market; you should have the current market knowledge and the strategies to be used to trade in such market. The reality behind the market is that the market runs on the risky platform so the traders should be attentive about the marketplace. We have made it clear for you that trading strategies such as London breakout are worth trying. The traders should be aware of the market 100% to be a professional.