What to expect before Major Session kicks in (Session start)
This is probably the most common type of trading - "Start session breakout"
But, as you can see, what also is very common - whipsaws are so common, and due to lack of money management, the beginning of the session can be very disturbing, and it also can be the end of trading for a current day or even end of trading career for some. It all happens because of over expectation and lack of understanding of what to expect.
Ok so 3 major things to know before the session opens, (I would consider GB and US opening and European closure) Where the price is relatively to levels. Are there any news coming out within 1 - 1,5 hours What is a trend direction?
Normally when big markets are opening, it gives the impulse to price movements. The exception is when the news are coming out right after the market opening, in this case the volume will flood the market during or after the news. So nothing special will happen with the market.
Breakout entry - is something what traders are mostly interested in, as the easiest approAch that can give some good returns, but if the price is in a tight range, here's what traders must know: in 90% of situations, thee most volume will be on the opposite side of the breakout, meaning that stops on the opposite side will be triggered first, before the price will break towards the original direction.
The price position in a relation to trend will help to deicide the direction of the set up.
Always think from both sides, and remember, that if You had a bn to trade with, you would never buy when the price is high, and sell when the price is low!.
The price breakes through resistance level, triggers work - price goes down, then cross resistance level whithout resistance?
But triggers Can reverse market and make price go down? If there is a lot of volume it can give strong impulse down.
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Lucid.Trader
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Thank you, this is a career saver.
Marenno
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that's a great comment, thank you!!! would you like anything else to read about?
But triggers Can reverse market and make price go down? If there is a lot of volume it can give strong impulse down.
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