What if you created a trading system based on one simple principle? What if you observed a market behavior that was so consistent that you almost always knew what was going to happen that day? Well, many traders have done just this, and many of these traders incorporate what I call the Asian Drift into their trading. These traders have noticed, just as I have, that the Asian session in forex is famous for drifting moves. These moves are often directionless and sometimes even have a move in the non-dominant (wrong) direction. In other words, during up days (bullish daily candlesticks) we see an Asian drift downward, or directionless, and during down days (bearish daily candlesticks) we often see a move up (or directionless moves) during the Asian session.
Take a look at last week’s AUD/USD 1 hour chart to see if you can spot the Asian drift.
How powerful is this information? I think you can come up with at least one way to trade the Asian drift. As with any trading system it is best if you test it extensively before risking any money. Happy Trading!