In this case, the daily chart Low serves as chart support and the opportunity for forex traders to make a Buy entry trade. The ideal stop loss SL to place in this forex trade is lower than the previous low of the chart swing. This forex strategy gives the market the needed gap while offering the most effective stop loss SL to prevent whipsaws.

However, the most profitable take-profit TP options for this type of market trade will be the daily high. See also Super Scalp Winner Forex Indicator Free Download. The price fluctuates from the daily chart HIGH, forex traders can take a SELL, and the high serve as resistance. The position can hold until it hits the daily LOW, which is the ideal way to profit. The best stopping point for such positions may be the previous high of the swing.

Additionally, forex traders can use high and low indicators to determine the direction of the trend. For instance, if a price keeps breaking the lows, it indicates a highly BEARISH trend. However, If the market consistently exceeds the high, it is a sign that the current BULLISH trend is strong. The indicator Daily H-L for MT4 can be utilized to trade a multi-timeframe MTF chart.

Trends higher in the time frame are more likely to last longer. If you are trading the breakout of a daily candlestick that is larger than the earlier candlesticks, you might be caught by the mean reversion of the price.

In the forex market, it is often difficult to predict how long a trend could stay. The basic concept of making a good profit from the forex market is to buy from low and sell from high. Therefore, any bullish breakout from a significant support level in a daily timeframe would indicate a reliable daily breakout strategy compared to a trade setup from the middle of a trend. This trading strategy is simple as you can make most of the trading decision a day before the movement is expected. The main of this trading strategy is to place two pending orders above or below the yesterday candle.

We should consider the daily timeframe to determine the high and low prices. Later on, move to the lower timeframe usually H4 to enter the trade. However, for new traders, it is recommended to stick to the daily timeframe. This trading strategy works well in all currency pairs, including EURUSD, GBPUSD, USDJPY, or AUDUSD.

However, sticking to the major and minor currency pairs would provide a better trading result. Moreover, you should avoid exotic pairs as there is a risk of the false move by hitting the high or low and reverse back. In this trading strategy, the challenge is to avoid correction and choppy market.

In that case, you should read the price action to determine the possible movement by measuring the price momentum. Moreover, to get the maximum benefit from this trading strategy, follow strong money management rules.

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When day trading forex, I use this strategy to capitalize when the price of the EURUSD nears the session London or New York high or low. There are typically stop orders clustered above the session high and below the session low from people who placed trades earlier in the session.

That means that when the price approaches the session highs and lows with some momentum, it often blasts through sometimes only temporarily. We need a strategy to capitalize. If you are new to forex, check out the Forex Introduction Course which gives you the information you need to get started in this market.

It is possible to get trades once London closes, and only New York is open, but you want to make sure that the price is still moving a fair bit compared to earlier in the day. Trade the strategy after 3 AM EST and prior to 3 PM EST. There are multiple variations for this strategy.

Ultimately, we are looking for price action setups that indicates the price could move to and through the session high or low. Once the session high or low is set, the price must move significantly away from it.

This is a requirement. Our strategy comes into play once the price moves back, close to, the session high or low after having moved significantly away from it for a while. The session high and low are a moving target. At a given point in time, there is only one session high and session low. Old ones no longer matter for this strategy once they have been penetrated.

One of the simplest versions of the strategy is to watch for contracting volatility just below the session high or just above the session low when the price re-approaches.

The price swings just need to be contracting getting smaller with each passing one. Once the price starts contracting, then watch for a consolidation. A consolidation is when the price moves mostly sideways for at least three price bars. The price must then break out of the consolidation in the direction toward of the session high or session low. I have found slightly better results when the consoldiation forms on the same side of the contraction as the session high or low.

Charts from TradingView. This strategy may provide one or two trades a day, but not always. There are multiple variations of this strategy with slightly different setups. Look at your charts near the session highs and lows and see if you can spot any other patterns that tend to produce favorable results. For another strategy, check out the Double Pump Day Trading Strategy.

The stop loss part of the strategy is simple. Put the stop loss on the other side of the consolidation. If the breakout was to the upside near a session high place the stop loss 0. If the consolidation breakout was to the downside near a session low place the stop loss 0.

You could use a trailing stop loss, or a fixed reward:risk ratio. This latter choice is the simplest and will likely work best for most people.

Utilize a reward:risk, meaning if the distance between the entry and stop loss is 4 pips, then the target is placed 8 pips away from the entry. If the stop loss is 5 pips, place a target 10 pips away. Often you can get away with a larger than reward:risk, but it may mean holding through some ups and downs in the price. Or consider the use of a trailing stop loss. Or, if you notice a lot of momentum, or the price is really coiled up and looks like it could explode, possibly look at using a larger target or utilize an aggressive trailing stop loss once the price has surpassed your reward:risk original target expand it or delete the target order and use the trailing stop instead.

This is favorable in situations like the following chart example. It shows a , for a 5. To place quick entries, with a stop loss and target attached, you could use the Market Depth feature in MT4. Then right-click on the EURUSD and select Market Depth. Or on your EURUSD chart, right-click and select Market Depth. As the price is consolidating you will know how big your stop loss is. Put it in the SL box. If your stop loss is going to be 4 pips, put 40 in the box because it is based on fractional pips.

If your target is going to be 8 pips, put 80 in the TP box. Enter your position size in the middle box based on your account size, stop loss level, risk tolerance. To calculate position size quickly, you can use this online position size calculator. Be sure to test this all out in a demo account before using as some brokers may be different. When the price breaks above the consolidation, click Buy near session high.

When the price breaks below the consolidation, click Sell near session low. This should instantly get you into a trade with your stop loss and target also placed. If a confirmation screen pops up, that could slow you down. Want to learn more about how to crush the EURUSD in 2 hours or less a day?

The EURUSD Day Trading Course shows you how. As mentioned, there are multiple ways to enter trades when the price approaches the high or low. At about EST the price approached the daily low blue horizontal line set earlier in the London session. The price drifted higher. The price then fell close to the low and formed a consolidation. We know that lots of people likely have stop orders entry and exit below that daily low level, so it is likely to get touched and shoot past, even if only briefly.

A consolidation just above the daily low provided an entry opportunity. Just a consolidation that provided an entry near the key level. This same pattern played out a couple other times earlier in the session as well also marked. Sometimes we get a contraction, but sometimes there is only a consolidation.

The stop loss goes on the opposite side of the consolidation, and a profit target is placed at a reward:risk. The chart below may look a little squished. That is because when I trade I typically use the same y-axis amount each day. This way, I can assess price wave size day to day on the same scale. If you zoom in, even a 5 pip move looks huge. I typically set my y-axis to a little more than the daily average movement. Around this time it was 80 pips per day, so my y-axis is manually set to about 80 pips.

The y-axis amount changes over time. On most of my example charts, I zoom in to make the patterns clearer. My EURUSD Day Trading Course shows you how. Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage. Cory is a professional trader since In between trading stocks and forex he consults for a number of prominent financial websites and enjoys an active lifestyle.

He runs TradeThatSwing and coaches individual clients. Hi Chris. I have traded both sessions in the past, but typically focused on only one at a time. So if you like staying up late, trade London. Either is fine.

Splitting the two with a bit of sleep and trying to trade both in the same day will likely wear you out…I tried it and my trading and quality of life suffered. Stick to one session. I usually only trade for about a 2 hour period during the overlap period of London and New York. It provides ample opportunity most days some days I end up taking no trades because there are no setups or conditions are too quiet.

After London closes the opportunities tend to dwindle. Great strategy thanks for sharing. I had a quick question on how much to trade, hope this is a good place to drop it. Since the London session has much larger volume and swings do you or have you traded that session as part of your regular trading routine?

Have you tried a split sleep routine to catch both sessions? Thanks, Chris. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. Sign Up for My Free Weekly Trading Tips Newsletter. EURUSD Session High Low Day Trading Strategy A EURUSD day trading strategy for quick gains near session highs and lows. EURUSD Session High Low Day Trading Strategy April 22, Posted by Cory Mitchell, CMT Forex Day Trading Lessons 2 Comments.

Partner exchanges How it works? Log in Demo Desktop platform DEMO Mobile platform Demo reports Live Desktop platform LIVE Mobile platform Live reports. It provides ample opportunity most days some days I end up taking no trades because there are no setups or conditions are too quiet. It is mandatory to procure user consent prior to running these cookies on your website. Error occured!

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