Before going into the main content, this is a very effective and effective intraday trading technique created by a very famous expert in the Vietnamese foreign exchange market - Ms.

As we also know, the British pound is one of the most actively traded currencies against the US dollar during the European session as well as the time of the crossover between the European session and the American session. Outside of those timeframes, the pair usually trades pretty poorly as most of it is done through UK and European market makers. This provides a great opportunity for day traders, taking advantage of the price directions that come from the first few hours of trading of the London Session. This strategy is based on the notion that UK traders are notorious stop hunters.

This means that the initial movements of the currency pair at the opening of the London Session may not be movements in the right direction. Because the UK and Europe are the main market makers for GBP/USD, they have insight into the actual SUPPLY and DEMAND for the currency pair. They will survey their books as the session opens and use their client data to trigger stops on both Buy and Sell sides, thereby making a profit.

Once these stops are triggered, the real movement of GBP/USD begins. And we will rely on that to enter a buy or sell position. This strategy works best after the US session opens or after a big economic data is released. With this strategy, you will wait for the noise and turbulence in the market to subside, then trade on the real price action of the market that is created afterwards. Here are the rules of strategy execution:

Buying rules

  1. The European session starts at around 1 a.m. New York time (About 13:00 p.m. Hanoi time). We will mark the range created by the price action between the Frankfurt and London sessions (13:00 – 14:00 Hanoi time).
  2. If the price falls below 25 pips from the lowest low of the range. We will be ready to enter the order.
  3. Place a buy order 10 pips above the top of the range.
  4. Place stop loss no more than 20 pips below your entry point.
  5. If the profit is already more than double the amount you risked, take profit in half and move the stop loss on the rest of the position (trailing stop).

Selling rules

  1. Mark the range zone formed by the price action between the Frankfurt and London sessions (13:00 – 14:00 Hanoi time).
  2. If the pair rises more than 25 pips above the top of the range formed between the Frankfurt and London sessions, we are ready to enter.
  3. Place a sell order 10 pips below the bottom of the range.
  4. Place stop loss no more than 20 pips from your entry point.
  5. If the profit is already more than double the amount you risked, take profit in half and move the stop loss on the rest of the position (trailing stop).

For example

Here are some examples for the whole family to observe. System details are shown in the illustration:

Example 1

Example 2