Thanks Fat Tails for your prompt enlightenment! Yes, it's definitely an enlightenment for me and your tips are eye-opening .. I don't know about them until now. I have written them down on my VI log + will study the chart, ie will try to prepare one matching yours to better understand the sessions. At this point, not 100% clear ..
Oh, a quick question please. When reading different threads/posts, I came across a trade idea "AsianBox Breakout Trade". Draw horizontal lines at High and Low of the Asian Session (between 3:00 am and 4:30 am EST) and trade in the direction of the box break. Appreciate your experience on the same please. Thank you in advance.
Thanks Cory for your tips. I notice you're the creator of many .. many volume indicators (incl many other kinds). I've to confess that I have a "Big" head trying to understand most of them. Right now I will stay with the Volume Stop one which is almost the only one that I understand .. sigh ..
Oh, regarding volume increases, do you compare the existing one with the previous bar? If not, will you mind giving me a crispy education session please?
When I tripped over some amazing indicators, I used to be really overwhelmed (lots of excitement). Now I simply realize my ignorance for not understanding most of them .. certainly will not benefit from their addition to the charts except for a "more beautiful" appearance.
With more practice, I'm getting close to identify my preferred trading time incl when NOT to trade. 2 more with the last (third) one breaking the 595.70 Resistance while the second one aligned with Method 1. Will stay with 12 ticks (first trade) for the official record since 1 1-contract trade/day is the guideline.
Now I will tackle some non-trading issues before studying Fat Tail's chart and prepare my version .. smile ..
yes, I don't have any complicated formula or hard to follow theory for example since I wake up at 7 Am NY time every day, my over night range is always from 4:15pm previous day til 9:30 am today for any kind of contract.
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OK. Have never heard about that Asian Box before. But this is what it is all about:
Volatility during the Asian session is generally low. European markets wake up at around 8:00 CET (Central European Time). This is the opening of EUREX and the London Forex Market. When these markets open you can trade an opening range breakout.
The Asian Box concept can not be applied to US Index Futures, because American markets are still sleepign at that time. In the early morning you would rather want to trade FDAX or FESX, because volatility is higher. The Asian Box concept is best suited for trading the EURUSD, GBPUSD and USDCHF or the currency futures 6E, 6B and 6S. For obvious reasons these are not traded in Asia. Volatility picks up after 8:00 CET, but still remains moderate. The highest volatility for the currency pairs will be found during the New York / London overlap, which is shortly after the New York open.
You also can trade Asian Box breakouts with CL, as the International Petroleum Exchange in London (now part of ICE) has oil futures (Brent Crude, Gasoil) trading. There is no major oil exchange in Asia.
Session time for Asian session: from the New York Close until 2:00 AM EST.
Below is a chart for 6E that shows the Asian boxes and the volatility breakouts, which occur afterwards. Sometimes you have to wait a few hours for the breakout to occur. Also note the false breakouts.
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Last edited by Fat Tails; August 24th, 2010 at 02:50 PM.
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