London is one of the most important financial hubs in the world, and the London forex market is one of the most active and liquid markets in the world. Traders often use the Asian session to prepare for trading the London session, as it is during this time that traders can gather information, analyze the market, and prepare for the opening of the London session.
Here are some tips on how to prep for London using the Asian session forex.
1. Analyze the market
The first step in preparing for the London session is to analyze the market during the Asian session. Traders should look at the price action, economic news releases, and any other relevant market data that might affect the market. This will help traders identify potential trading opportunities and create a trading plan.
2. Identify key levels
Traders should also identify key levels in the market during the Asian session. These levels include support and resistance levels, pivot points, and trend lines. Traders can use these levels to determine potential entry and exit points for their trades.
3. Monitor economic news releases
Economic news releases can have a significant impact on the forex market. Traders should monitor economic news releases during the Asian session to identify any potential market-moving events. This will help traders adjust their trading plan accordingly and avoid trading during high volatility periods.
4. Use technical analysis
Traders should also use technical analysis during the Asian session to identify potential trading opportunities. Technical analysis involves using charts and indicators to analyze price action and identify trends. Traders can use technical analysis to identify potential entry and exit points for their trades.
5. Set up alerts
Traders should set up alerts during the Asian session to notify them of any potential trading opportunities. Alerts can be set up for key levels, economic news releases, and other market data that might affect the market. This will help traders stay on top of market movements and adjust their trading plan accordingly.
6. Plan your trades
Finally, traders should plan their trades during the Asian session. This involves setting entry and exit points, stop loss levels, and profit targets. Traders should also consider their risk management strategy and adjust their position size accordingly.
In conclusion, preparing for the London session using the Asian session forex requires traders to analyze the market, identify key levels, monitor economic news releases, use technical analysis, set up alerts, and plan their trades. By following these steps, traders can increase their chances of success in the London forex market.