Daily Movement Strategy: Trading the Night Range
The "Daily Movement" strategy is a "set and forget" system designed for the H1 timeframe. It capitalizes on the breakout volatility usually observed when the European market opens. By defining the flat range formed during the night session (22:00 to 08:00), traders can place pending orders to catch the morning momentum automatically.
Strategy Profile
Timeframe
H1
Pairs
EURUSD, GBPUSD, AUDUSD
Type
Range Breakout
1. Defining the Channel
Identify the High and Low of the price action between 22:00 (previous day) and 08:00 (current day). This strategy works best when the market has been flat during these hours. Avoid using it if there was a strong trend movement overnight.
2. Long Entry (Buy) Rules
- Pending Order: Place a Buy Stop 15 points above the night channel High.
- Stop Loss: Place at the channel's support level (Low).
- Take Profit: 2x the distance of the Stop Loss (Risk/Reward 1:2), but do not exceed 100 points.
3. Short Entry (Sell) Rules
- Pending Order: Place a Sell Stop 15 points below the night channel Low.
- Stop Loss: Place at the channel's resistance level (High).
- Take Profit: 2x the distance of the Stop Loss (Risk/Reward 1:2), but do not exceed 100 points.
Order Management
- Expiration: If neither order is triggered by 15:00 GMT+2, cancel all pending orders.
- OCO Rule: If one pending order is triggered, immediately cancel the opposite one.
- Frequency: Expect about 1-3 valid signals per week. Patience is key.
Trade the Morning Breakout: Automate your entries with pending orders and earn rebates.
⚠️ Disclaimer: The content of this article is strictly for informational purposes and does not constitute investment advice. FXRebate is a rebate and affiliate service, not a broker or fund manager; responsibility for trades and funds lies exclusively with the third-party broker. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. Partner links used do not generate additional costs for you.
