As you know, the Asian market opens with consolidation and trending. This range can be traded using the Intraday Channel Breakout indicator. It uses the four-hour opening range.
The channel’s highest and lowest points are shown, with the middle being the pivot range. This channel is only suitable for trading strategies that are short-term and operate on shorter time frames, ranging from one minute to four hours. It is ideal for trading strategies that are shorter than the daily timeframe.
If the market is above the midpoint it has an uptrend bias, while below it has a bearish bias.
In the price breaks above channel, enter a long trade. The channel should be closed by the triggering candle. A bearish channel is also created when the price action falls below the channel and the triggering candle closes below it.
Example of Intraday Channel Breakout Trading
This chart shows the price movement for the Euro against US dollars. The indicator draws a channel as the currency pair consolidates. Bullish sentiment is evident when the price rises above the midpoint. The channel is broken and the price moves ahead.
Similar to the previous example, a price move below the channel and below the midpoint is a sign that the price has reverted. This is a signal that you are trying to open a short trade.
The intraday channel breakout is a great indicator to trade the Asian range. It provides precise trade entry points.