Session High/Low Strategy Day Trades As The EURUSD Falls

The EURUSD is forming a topping pattern on the daily chart. The last two days have seen strong selling pushing the price down into a minor 1.17 support area. It hasn't broken through yet though.

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eurusd daily

That is what's going on on the bigger time frame. When day trading, I trade the 1-minute chart. I don't look at the daily chart, but the selling has been evident on the lower time frames as well. 

Let's look at some of the trade examples that have occurred based on variations of the Session High Low strategy.

Here were some potential trades on Sept. 22.

At about 10:05 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. 

This entry isn't exactly like the one discussed in the Session High Low strategy article. We didn't have a big contraction in price. 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. 

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EURUSD session high low strategy examples Sept. 22 2020

As mentioned in the Session High Low article, there are potentially many ways to play the session high low  strategy once we know that the price often pops through the high/low. We just need to wait for the momentum to start moving toward that high or low, and then wait for a consolidation or contraction to trigger us into the trade for the potential daily high/low breakout.

The stop loss goes on the opposite side of the consolidation, and a profit target is placed at a 2:1 reward:risk.

Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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