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Learn to Read Forex Calendar to Ensure Successful Forex Trading August 5, 2022
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Cherry-Blossom Trading Strategy

by
December 28, 2020
in Strategies
Reading Time: 2 mins read
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Original version, concept

This strategy is called “Cherry-Blossom” because it suggests trading both American and Asian sessions. The idea proposed by this strategy is the following: American session is normally the one that shows the way, and the Asian session is the one that follows. So the approach here is to watch what happened during the American session and to open positions during the Asian session in the direction indicated by the American one. Opening positions is based on Fibonacci retracement levels as indicated below.

Original version, steps

  1. During the American session (15:00-00:00 GMT Summertime) pick a trade item that made a strong move (preferably 30 pips large)
  2. Apply Fibonacci retracement levels (100, 61.8, 50, 38.2, 23.6, 0.0) to the full span of that move.
  3. Before the Asian session starts (02:00 GMT Summertime), open pending orders at the key levels of the Fibonacci indicator (61.8, 50, 38.2, 23.6), with Stop Loss at 100.0 and Take Profit at 0.0.
  4. Some of your pending orders will get activated and closed at the Take Profit you set during the Asian session (02:00 – 09:00 GMT Summertime) and later on.

Extended version, concept

Practically, the American and the Asian sessions often do not trade in the same direction – in fact, it is very common that one trades against the other or goes into consolidation. Finally, in terms of time, it is the Asian session that opens the day, with the American session either confirming the moves or “disproving them”. For these reasons, a wider understanding of this strategy is suggested to make it more useful. Activating pending orders as in the image above requires the price to go into a retrace first, and then to fall into the observed direction. This relies on a wavy sideways pattern more than just on a trend continuation assumption. Therefore, it appears more practical to find a sideways pattern with a clear bottom or upper border, and apply the same steps.

Extended version, steps

  1. You find a wavy pattern (doesn’t have to be purely sideways).
  2. You apply Fibonacci levels to the full span of the last observed wave.
  3. You set pending orders in the expected direction at the beginning of the coming wave.
  4. You set Stop Loss at 0.0 and Take Profit at 100.00.
  5. You wait for those pending orders to get activated by the next wave and close.

Channel: FBS - Broker | Visit
Foundation: 2009 | Regulation: CySEC, IFSC | Min. Deposit: $5
Tags: FBSH1Pattern
ⓘ Some contents provide links to third-party news and current events as a convenience to you. We have not reviewed and don't endorse the contents of these sites. Please always do your own research. Mira FX does not endorse any companies, products or services which are represented on this article. Mira FX is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite.

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