The advanced trading strategies rely not only on chart reading and number crunching but
also on the order flows analysis. This is my most favorite strategy and it is based on
a simple fact - order flows related to position sizing. Most of the major US economic
data are released at 1:30 PM GMT which is in the beginning of the US trading. These data
could cause big price moves and make the environment more risky. That is why a lot of
market players prefer to have smaller positions before the real action begins and they
usually close part of them. This happens between 12:30 and 1:30 PM GMT. This is an
advanced trading strategy and I will share only the general principles here. More
information and real examples you can find in our Blog. The rules for opening a position
are as follows:
Trading Rules
- The currency pair should be
trending during the European morning trading. Usually this trend is in
the direction of the breakout of the Asian trend after 8 AM London
time. The strategy could be used also in ranging markets but the
success rate will be lower.
- Around 12:30 GMT (it is
better at least a few minutes after) the market nears support (if the
trend was down) or resistance level (if the trend was up). If the
currency pair breaks 10-15 pips beyond the level we should avoid the
position.
- After the test of the support or resistance
level we open a position in the opposite direction of the morning
trend. A lot of filters could be used and I recommend developing and
clarifying your own rules. You can find a lot of advice on this
strategy and real examples in our Blog.
- After we open a position we use Stop and Limit according to our money management rules.
- http://forexsb.com/strategies/gmt-strategy.html
| 
