Chapter 3 lesson 8 - When to avoid trading specific sessions Flashcards
What should you look for to avoid trading the London session?
- If the Asian range is 40 pips or more, or the Asian range provided price expansion, then avoid the London session. The reason for this is that when Asia expands, London is likely to consolidate.
- If the CBDR is more than 50 pips, avoid London because the dealing range is not favorable to use for London setups. If the dealing range is too large, then we won’t be able to measure the protraction accurately.
- If today’s range is more than double the ADR, then we should avoid London in the next day. The reason for this is that the market tends to consolidate after a large range.
What do we use to frame the London session?
We use the Asian range to frame the London session.
What should you look for to trade the London session?
There should be a clear draw on liquidity on the lower time frame.
What’s the best model for trading London sessions?
The power of 3.(AMD box setup)
What’s another rules that we can use to determine whether or not to trade, or how to trade?
If there are 3 consecutive bullish days in a row, avoid looking for buys the next day. This is because the market tends to retrace or consolidate after such a large move. This has to be read in conjunction with HTF PD arrays though as there can be exceptions.
What should you look for to avoid trading the NY session?
If the London session offers the majority of the ADR, then NY will consolidate.
What are psychological reasons to avoid trading?
Avoid trading:
1. if you’re in a heightened state of emotion.
2. if you’re in a hurry to complete a challenge.