? What is the 2-hour FOREX trading strategy
I had a very strict cut-off time for trading because I needed to close all my positions and leave for work and that is why I developed the habit of focusing on the first 2 hours of trading the market opening and the setups that I still trade with today were also developed on days when I had to wake up early in the 5:00 AM PST and execute all my plans during 9:30 to 11:30 AM market time .
Preferred trading setup for a 2-hour forex trading strategy
My favorite trading setup is the gap-up reversal with this type of setup I focus on trading currencies that have gained a lot of momentum during the pre-market hours, these setups helped me grow my accounts in the early years and are still one of my best-performing setups this year.
Here are some long and short trades I’ve done recently on the more volatile big coins like Nvidia and smci I know some of you are very interested in Pnls so here they are now what you can learn from these trades is how to execute my setup during the ideal time frames, So let me walk you through my executions on my Nvidia Gap up to the short setup, which is a decent trade that results in five profit figures.
So we’re looking at this quick trade that I made on Nvidia in the open market, and I think I traded within the first 10 minutes of the day, so the key was that I’m looking for a lot of breakouts and moves that happened in the first 30 minutes when the market is very volatile, So you can see that the currency you know had a slight rally in the morning and broke through an area which at that time was a major daily support .
We’re looking at this particular day, you’re breaking the pre-market lows and at the same time you’re closing the priorities as well, so you’ve gone from green to red and you’ve broken multiple key levels, especially the major daily support and that gives us a downward move towards ideally .
Daily chart for forex trading
On the Nvidia trading daily chart I used Pre-Market Gap Levels, you can see the pre-market gap levels and highs to use this as part of trade planning, which is why having a gap scanner that scans the live pre-market is crucial to your routine. My trading is for small-cap stocks with low float.
They’re usually more volatile than the larger coins, especially during the pre-sale, where you can see a lot of these low-float coins have already rotated two or three times that volume before the market even opens, which is why you see these parabolic moves entering the open but Sometimes they may fail this breakout the moment the market opens.
Other times, this type of small-cap coin will be higher by over 100% pre-market but then proceed to sell off for the rest of the day. The reason is if you are trading small-cap stocks, it is more important to understand that you need to bear the importance of this step and this is to ensure that the rug is not pulled out especially in the first hour of the market opening as we mentioned earlier.
Forex positions before entering the market
Only take positions before entering the market under some very specific circumstances, first of all, the coin needs to be around for the second or even third day in a row, and I need the coin to prove that it was able to hold on to the first day’s gains in the green days It must have a strong close the day before.
Like this long trade, I took in the pre-market on Hulu last month, you can see the rest of the order was stopped out at the market open along with keeping the first day of the breakout in the green. Also, look for a minimum trading volume of 1 million shares before considering a trade. I also want to see a lower float and a gap of at least 10%.
Forex morning session
The morning session, especially right after the market opens, is known for its high volatility, and you can see that these currencies make big movements in either direction, often breaking their pre-market highs or lows and then quickly regaining those levels, which is a time characterized by panic movements as traders react And elos with nightly news or initial market activity.
These are some of the best times to open a position if you are a momentum trader. By mid-morning around 10:30 to 11:30 the market will often start to show a reversal and perhaps start to recover from overcorrection moves at the open. This is the time when you can… Seeing coins that have been trending down may start to slowly reverse upward and vice versa for high beta names like Nvidia or smci, this could be a critical time for reversal moves after 11:00.
Summary
If the currency maintains its trend, it will likely be able to establish a trend that can continue until the afternoon, and this is especially true for small-cap stocks if you do not see them break down after 11:00 AM.
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