WED 6 June 2018 JYen ( 6JM8) ASIAN session - looking for small edges
Below is a look at 6J using market profile ( each session EUR- US- ASIA) from 1 June to 6 June:
One obvious characteristic of ASIAN session is that the range of trading is much smaller and so it can be easier to control risk when learning or starting to trade the contract.
The larger volume profile over the last 3-4 days can reveal much about the heaviest volume price levels. These can be magnets during the lower volume ASIAN session.
Range trading seems the most appropriate style such as buy low / sell high and reversion to the mean scalping etc
Next I look at a traditional bar chart on a 30 minute time frame to help define the strength
of the trend down....this helps determine the style of trading for the session eg. scalping vs swing trading etc
Here today close to end of 6J session there is a weak downtrend; I may swing down & scalp up until the trend changes again to trading range once it rallies past the light blue line.
This is 4 * atr ( 30 min) or 4 * 7 pips ( 14 ticks) = 28 pips.
Finally I look at a candle footprint chat showing volume profile on 15 minutes during ASIA because of lower volume. The 6JM8 still has one of the best volumes per bar compared to other currencies which is desirable because thin markets move too erratically.
The Footprint helps establish who is winning each bar - the bulls or bears as can look 'inside' the bar volume at each price level. See below for my DEMO account buy entry. This will be a scalp as a counter-trend trade for now more than 8-12 ticks. The Stop loss should not be more than this and I will place it below the entry bar usually, and trail it up very slowly
only. Let's see how this trade goes. I am looking at the next 50-100 trades to judge my system of course but I hope my ideas work out ( confirmation bias?).
Entry was at 15:15 pm.
Once the trade (if?) goes into profit by 5 ticks, I have moved the STOP up from 8 ticks to 4ticks below entry. The idea is that if proven a losing trade I will only lose a little. I have yet to determine on the 6JM8 whether it works with my techniques.
Missed profit target by 2 ticks - darn-it. Ha ha.
Oh well, survived with only a small loss, next trade....
lesson? The only thing I noticed was it's 16:15 ( 1 hour later) and EUR session soon,
so I noticed a big spike in volume on the bar that took me out.