Strategies in Forex in terms of the time interval can be divided into scalping, intraday, medium and long-term (where the transaction is open for several days, or even weeks). But there is another type of strategy, we would call them targeted. They are based on the fact that in a certain period of time there is a stable trend regardless of the situation on the market. For example, closing positions before the weekend. The example of our strategy uses the fact of change at the moment of the start of the European Forex session, when a surge occurs on certain pairs. True, trade is only the first hour.

European Forex Session: how to make money on volatility

The strategy uses the classic base indicator Parabolic SAR. This is a trend indicator that tracks the trend development process and notes its potential reversal. The tool is a point and clearly shows the change in the direction of the price. It was first developed by Welles Wilder in 1978.

The formula for calculating it:

The strategy is suitable for those who prefer an unhurried version of trading. The optimal timeframe here is M30, the currency pair is EUR / GBP. Parabolic SAR indicator parameters: step – 0.02, maximum – 0.2. These are the basic settings that are considered optimal.

Conditions for opening a long position:

  • Parabolic SAR was falling at the time of the opening of the European Forex session and before 10.00 (that is, on 2 candles), but on the first or second candle turned into growth.
  • After closing the first candle on the growing Parabolic SAR, we open a deal with fixed stop loss and take profit of 10 points.

If there is a reverse price reversal on the second candlestick, we close the deal.

Conditions for opening a short position:

  • Parabolic SAR was growing at the time of the opening of the European Forex session and before 10.00 (that is, on 2 candles), but on the first or second candle it turned into a recession.
  • After closing the first candle on a falling Parabolic SAR, we open a trade with a fixed stop loss and take profit of 10 points.

If there is a reverse price reversal on the second candlestick, we close the deal.

Out of the market is better in obtaining fixed profits. The European Forex session for this currency pair is characterized by high volatility, because with a high probability after the morning growth, a reversal is possible. There is a chance to catch a strong trend, but only under the condition of some fundamental factor (statistics do not come out with the opening of the session). Because the use of trailing and trying to earn more is not recommended. We propose to discuss this strategy in the comments!

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