The Asian session range is a term used in the forex market to describe the range of price movements that occur during the Asian trading session. This session is the first of the three major trading sessions, the others being the London and New York sessions. Understanding the range of price movements during the Asian session can help traders make better decisions about when to enter and exit trades.
What is the Asian Session?
The Asian session is a period of time between 12:00 am and 9:00 am GMT. During this time, the major financial centers in Asia, such as Tokyo, Hong Kong, and Singapore, are open for business. As a result, the Asian session is known for its low volatility compared to the other two sessions.
Why is the Asian Session Range Important?
The Asian session range is important because it provides traders with a clear idea of the price movements that are likely to occur during this session. Traders can use this information to plan their trades accordingly, taking advantage of the low volatility to enter or exit trades at the most favorable prices.
How to Calculate the Asian Session Range
To calculate the Asian session range, traders need to identify the high and low points of the price movements during this session. This can be done by looking at the price charts and identifying the highest and lowest points. Traders can then subtract the low point from the high point to get the range.
Strategies for Trading the Asian Session
There are several strategies that traders can use to take advantage of the Asian session range. One strategy is to trade breakouts. This involves waiting for the price to break out of the Asian session range and then entering a trade in the direction of the breakout. Another strategy is to trade the range itself. This involves buying at the low end of the range and selling at the high end of the range. Traders can also use technical indicators, such as moving averages, to identify trends and trade accordingly.
The Benefits of Trading the Asian Session
One of the main benefits of trading the Asian session is the low volatility. This makes it easier for traders to manage their risk and avoid large losses. Additionally, the Asian session often sets the tone for the rest of the trading day, so traders who are able to accurately predict the price movements during this session are likely to have success in the London and New York sessions as well.
The Asian session range is an important concept for traders to understand when trading the forex market. By understanding the range of price movements during this session, traders can make better decisions about when to enter and exit trades. With the right strategies and a solid understanding of the market, trading the Asian session can be a profitable and rewarding experience.