Currency basket 2.0 - low volatility entries during Asia session
In this chart I display a trade setup I've been working on.
You pick 5 currency pairs, based on relative strength figures, and individual price action traits.
The idea is to profit from the mean reversion phenomena that normally occurs during the low volatility Asian session. Many pairs will show reduced volatility and a tendency to revisit previous areas of accepted value, or pullback from trending activity. I'll use either 3 ATR or structure to define stop loss and take profit levels.
Risk allocation is 1% total capital loss per pair, and that determines the lot size used for each, based on distance to the stop loss.
I use the 1h chart to find setups on pairs that show a strong currency vs a weak one for longs, and the opposite for shorts.
I'll expand the comments section with tonight's pairs once the NY session closes.
You pick 5 currency pairs, based on relative strength figures, and individual price action traits.
The idea is to profit from the mean reversion phenomena that normally occurs during the low volatility Asian session. Many pairs will show reduced volatility and a tendency to revisit previous areas of accepted value, or pullback from trending activity. I'll use either 3 ATR or structure to define stop loss and take profit levels.
Risk allocation is 1% total capital loss per pair, and that determines the lot size used for each, based on distance to the stop loss.
I use the 1h chart to find setups on pairs that show a strong currency vs a weak one for longs, and the opposite for shorts.
I'll expand the comments section with tonight's pairs once the NY session closes.
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ivanlabrie.substack.com/
ivanlabrie.substack.com/
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