Asian Session Indicator

Asian Session (AS)
The AS is from the start of Wellington 2200 hrs. GMT to 0500 hrs. GMT. It is the price range of the current day’s high and low from Wellington Open to New York Midnight. Draw the high and the low between these times on a chart and mark with a channel. It can be used as a volatility indicator.  If the width of the channel is less than 35 pips then this is low volatility (choppy) and it would be best not to trade my systems.  The width of the channel must exceed 35 pips in order to begin trading that morning. This is designed to prevent you from trading in a choppy market.

Once 35 pips is met look for a break out of consolidation from a SwH or SwL to trade.
The Asian Session can also act as an important area of support and resistance.  The high and low lines establish support and resistance points which must be respected throughout the day. You’ll find price action stalling or bouncing off this area.

I have software available to automatically put the AS onto your charts every day. It is called the Asian Session Indicator.
You can buy it here www.sm-forex.com/products

I have reproduced this morning’s AS below on the 15 min. EUR/USD chart. (Figure 3.4) Note the AS was only 19 pips this morning which is not enough to take a trade. It was important to wait until the gap was about 35 pips. You will notice that consolidation and support appeared at the bottom of the AS before the European open. The trade here was pretty simple. We trade away from a Swing High short and out of consolidation. We must wait, however, until the AS has extended to at least 35 pips to take the trade. Price is below both the 20 and 240 SMAs and the 20 SMA is below the 240 SMA which is ideal.(more on SMAs later).
Figure 3.4