Occasionally living in the Asia timezone and trading the session can be lucrative. It tends be a little slow at times without news or data to spark life into the period, however I enjoy the lower risks and thinner liquidity and get lots of scalping done.
The USD began to find a little love early in the session and I jumped on-board. It wasn’t a ‘close my eyes and dive in’ type of jump. I had my strategy together with my stop loss boundaries worked out well in advance .
Yesterday, a few of the major USD pairs made Hammer Candles on the charts after strong uptrends. This is never enough for me to throw caution to the wind and open short positions at the Asia open…………but it did give me a heads up that the trends could be softening, and also gave me clear levels to trade from, along with areas to focus my stop loss .
The Daily charts of the EURUSD and GBPUSD below both show Hammer Candles that can often be seen around the top / bottom of trends and can often signal periods of consolidation, and on occasions the end of a run .
Now on to the Hourly charts and what happened today in Asia ,,,,,,,,,,,,,,,,,,,Both charts witness a price breakout of the Weekly highs. — I sat on my hands as I watched this develop, mindful of the Hammer Candles on the D1’s the previous day and also aware that breakouts in the Asia timeframe can be fickle. – Price stalled above the breakout levels and reversed down as shown in the corresponding charts below .
These were both low risk trades with a high reward ratio, as stops could be placed at the highs of the failed break or even tighter at the actual breakout levels …….The resulting price moves are shown on the live charts below — If the Daily Hammer Candles hold true, then fading any rise towards resistance / the Asia high is still a play .
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