How to trade forex using the New York session strategy in cTrader

One of the best times during the day to trade Forex, especially for short-term traders or day traders, is during the US session, especially when on the hours it overlaps with the UK, the London session. Tons of money flows during these hours and provide the best liquidity, volatility, and opportunities for those who love to trade day trading and those who love to trade breakout. Those who love to see quick moves. What's up guys, Vladimir here from Home Trader Club. In this video, I would like to share with you how you can benefit trading the US session, the New York session in forex. We will talk about why specifically in this time or specific hours, and I'll show you a concept that is super friendly for those traders who love quick trades, high volatility trades, um, who love to trade gold, because I will be presenting gold. Of course, it's not only for gold, but I will be presenting gold. And for those who love to trade, um, quick breakout, uh, why specifically the US session? During the US session, uh, that there is so much money going through the market, flow through the market, uh, traded and, um, exchanging hands, um, that it brings so much liquidity, volatility, and opportunities during the, uh, the first, I would say, 3-4 hours. Why? Because these are the hours that overlap with the London session. So the US session is active from 8 AM to 5 PM Eastern Time, okay, New York time, Toronto time, and all the other Great cities located in this time. So during these hours, we see about 35 to 40% of the total volume during the day. We are talking in between seven to eight trillion dollars in forex every single day. And during these hours, 8 a.m. to 12 p.m., the 12 p.m. is when the UK London session ends according to the Eastern time. So So these hours, the first 3-4 hours of the US session, is when you get the biggest portion of the daily liquidity and volatility, uh, in Forex. So with this idea, you can imagine how the market tends to react in these hours and what opportunities the markets can actually bring. To traders, what instruments are traded the most during these hours? We are talking about all the majors. That could be the euro dollar, dollar yen, pound dollar, and of course we talk about the commodities. Gold is one of the best reactors. Usually there is no such thing hundred percent of times, but usually gold is one of the best reactors. During these specific hours. So there are tons of ways how to approach, uh, trading the sessions. Um, it could be breakouts, it could be reversals, it could be trend lines, it could be ranges, it could be previous session high-low, uh, breakouts, and so on and so on. Could be tons of ways. I'll be presenting one way how I love to trade breakouts after specific conditions using the divergences on the MACD. Okay, so let's begin. So this video will be presented on cTrader platform. Why specifically cTrader? We can talk about it for hours and hours and hours. cTrader has endless list of advantages over other trading platform. Here is my list. Why I love C-Trader over other platforms. And for those of you who follow me for a while, you know I am a very loyal MetaTrader. And yet recently, in the last years, the new platforms including C-Trader, probably, probably the best in the industry when it comes to professional traders' execution for retail traders. As simple as that. And here is once again the list of the reasons why I love this platform. Of course, it's not the only list, but that's the main one. Um, and that's why I will be presenting again this video on cTrader. Also, you can watch the full list I have here, uh, that I created dedicated to these platforms. I will continue and add more and more videos here. So, uh, for those of you who are exposed to this platform, um, for the first time, you would have the edge of watching how to deal with the platform, how to use the platform's features and also the different trading concepts, methods, strategies, and techniques, uh, when it is implemented on the platform. So, um, I mentioned before that gold is one of the main instruments that, um, moves during the US session, the New York time, especially in the hours when it overlaps as the UK or London session. Okay, uh, so with this idea in mind, I would be looking for 2 conditions, main conditions on the chart. As you can see here, I am on gold, okay, on the platform. I marked for you here the sessions starting from 8 AM to— you can see here it's 6 even though the session ended 5, and the reason is because, uh, you can see it's 6:45 and then there is 1 hour off market. Okay, so 6 basically is represented when the new candle opens, a new session ends, and the close of the previous candle. So of course you can go one candle before, it doesn't really matter. So, um, I created these ranges of different days and I will be presenting these examples. So what we will need here in this strategy that I love to trade the gold during the US session is divergences and Breakouts. So I'll go blank screen, okay, just to present what is a divergence in a very basic, uh, natural unit to know. Uh, so divergence is a condition that at the end of a trend— let's assume you had an uptrend, and an uptrend, what do we have? A sequence of higher highs, higher lows. And on the indicator MACD, in our case, or moving averages or the histogram, we would see lower highs. So the higher highs on the chart will contradict with lower highs on the MACD. This would give you a bearish divergence. If you have a downtrend, which means sequence of lower highs, lower lows, and on the MACD moving averages or histogram you would see higher lows, that means you have a bullish divergence. Okay, so, uh, for example, uh, take a look what we have here. We have a downtrend and then Lower lows on the chart, higher lows on the moving average of the MACD between the same two lows. That means bullish divergence. Then we had a rally, sort of a double top here with bearish divergence. So basically flat peaks and the bearish divergence on the moving average of the MACD. The one before we have the rally here and bearish divergence on the here. Histogram of the MACD. Okay, before that, we have the rally and then bearish divergence of the MACD. Okay, so that's again the basic of the understanding what is a basic divergence or regular divergence. Now I'll go blank screen again and let's talk about hidden divergence. These conditions is when you are in a trend. If it's uptrend, it's a sequence of higher highs, higher lows. You get the correction, and then you between these two lows, the beginning of the trend and the end of the correction, you what you would see on the indicator histogram, in that case only histogram, you would see something like that. Okay, between the histogram lower lows, so higher lows on the chart, lower lows on the MACD histogram would give you a bullish hidden divergence with a probability for continuation upside. When it comes to bearish one, you have. Bearish trend, lower highs, lower lows, and correction. And then on the MACD, what you would see is opposite condition. So you would see higher lows on the chart and higher highs— sorry, lower highs on the chart and higher highs on the MACD histogram. That indicates a bearish hidden divergence or inverted divergence with indication that possibly we will see continuation to the downside. Okay, so how does that look like? For example, here we are, sequence of higher highs, higher lows, correction. And then if we compare that, we have higher lows on the chart and look on the histogram, we have lower lows from the beginning of the trend to the end of the correction. Lower lows, that means bullish hidden divergence with an indication and potential to see a further rally. So that's about the divergences. And of course, if you want to learn much more about the divergences, divergence concept, divergence techniques, divergence strategies, and how it is implemented in real time, I invite you to Home Trader Club. You can join us with the link below this video in the description, and you would— you will find our full comprehensive detailed courses, and of course super comprehensive media zone section with also live sessions on a weekly basis, and mainly real-time trading education with real-time trading examples. So join us with the link below this video. And also, I invite you to download our free, absolutely free ebooks. You can see it right here or with the link below this video in the description, um, where you will find tons of materials. And especially there is a great ebook about the hidden divergences, so make sure you download that if you still didn't. And now let's talk about the breakouts. How do we deal with breakouts? So there are many ways to work with breakouts. One of the classical ones is go with trendline breakout, especially after you got some trending condition. So higher highs, higher lows, followed by some corrective legs to the downside, and then break above that. I can also face breakout with divergent— with a range breakout, sorry. Okay, so again, trending structure, range, and the breakout. Uh, you can also work with step breakout, which is low, high, low, boom, breaking above the last high, or high, low, high, and then breaking below the recent low. It's step breakout. And another alternative, uh, famous alternative, popular alternative, uh, is when you have sequence of rising candles and suddenly you have the candles that flip the direction, making lower lows, lower highs. Breaking the range of the last 2 candles of the previous trend, making— breaking the higher highs, higher lows sequence. So these are the main concepts for the breakouts which I love to work with. Now let's go to the platform again and let's take a look on the examples we have on gold. So this is the first example. And the way I love to trade it is in the break in the direction of the last divergence before the US session. Simple as that. So here We have the beginning of the session. What is the last divergence we have here? As I showed before, almost flat peaks, bearish divergence. We have the bearish pressure here, and of course that is an indication for potential continuation to the downside. Okay, then price reacts to the downside, and here comes the beginning of the session. And let's ask ourselves, what do we have here? High Low, high, low, and now a little bit bounce before the US session starts, and boom, break below the low. So we have the step trading breakout here with the bearish divergence, which means indication to the downside, uh, and with the direction of the sequence of the highs and lows— lower highs, lower lows. Bearish momentum, bearish breakout. The chances are with us. Okay. So it's pretty much speaking for itself. How do we work with that? So of course you can go and protect the recent highs. This high would be very aggressive, a little bit more conservative, a bit more conservative, of course, for the protections. And as per the targets, you would want. If this is your protection, of course it's small protection, therefore you can aim to— trying to aim 1 to 2 risk reward, maybe even more. I personally love to aim to the next key level. So this is a key level for us, a demand level. So from my, from my point of view, this is a very logical target. Um, and if, uh, you have a bigger protection, then aim to 1 to 1 risk reward during that. Meaning if you protect, let's say, this peak Aim to 1:1 risk reward. Let's take a look on another day example. Uh, here we are, second example. So I took few days in a row so you can see how that works. By the way, how do you— can, um, how can you duplicate, uh, the lines when you work with cTrader? Mark 2 lines, okay? When you stand on the line, hit the Ctrl button on keyboard, mark the line, 1 line, 2 lines. You can see the dots here representing that they are marked, uh, hold the Control button on your keyboard, left Control, and then you grab both lines with, uh, your mouse. And you can see here from 8 to 6, another, um, another, uh, range for the US session that is prepared. Okay, so, uh, let's go back to the— we saw the first example, let's see the next example. What is the last divergence? This is our range here. What is the last divergence we have in that case? Let's zoom in a little bit. So that's the last divergence in play for us, right? Bearish trend, then lower lows on the chart, higher lows on the MACD representing a bullish flip or bullish pressure. Uh, what we got here is also sequence of higher highs, higher lows. US session begins, comes the breakout, no close, uh, above that area, which is a little bit suspicious. We love to see the price closing, but also gives a good, um, a good call regardless. Uh, if we protect this low, this one would lose. Uh, and if we protect the bigger loss, then we basically got some pullbacks and further rallies. And here you would make your profits. So I personally am not a big fan of hard protections during the session. I personally love to see the flexibility, okay? Uh, meaning I love to give flexible price reaction during the session. If it does not develop and we have opposite conditions, for example If the price starts to make sequence of lower highs, lower lows, which means it's a bearish trend and now it contradicts my sell, I simply cut it out. So I'm in favor of flexible trading conditions during the session. If you want hard stop loss regardless if the market surprises, you go with the bigger swing high low. And again, it's where you find your comfort. I feel more comfortable during the session to have the control. Which means I follow the price structure, and if it doesn't follow my trading plan, I'm simply out. Why do I do that? Because I don't love these price fluctuations during the day, which could cause simply kicking out protections before the market actually does deliver the movement. Next example is here, and we have a bullish run with a bearish histogram divergence at the end. So, uh, we discussed about trend breakouts, for example, trendline breakouts. And in that case, we have our trendline going through all these lows. These can go with the bigger one, but this is the first one. The recent trendline is here— low, low, low, low, and low, right? Uh, once you've got the breakout, take a look what happens. This is the beginning of the US session. Okay, and I also presented here example, uh, how the candles flipped from sequence of higher highs, higher lows to candles that create lower highs, lower lows and break the last 2 rising candles range. So take a look what happens right here. It's a few candles after the, uh, US session started. Okay, we have the candles that made higher highs, higher lows, and then red candles that break, make lower highs, lower lows, and break the range of the last 2 rising candles here. Okay, uh, which base— and also of course the close below, which indicates a great opportunity to sell. Now you can see that not much was delivered here, which means there will be cases, and that's why you can see this example on the chart. I don't want to put examples only that, whoa, look at this move, look at this move, because it would not be true. The truth is that every day is different, and some days can go flat and some days can go against you. Uh, so at the end of the session, I am out regardless of if there is anything happening or not. And in that case, you can see that not much was happening. It might be delivering with the 1:1 risk-reward, uh, protecting the last peak, but it was not a crazy move to the downside. That's why you can see this example here, because some days are just like that. Uh, then we have this range which comes after a bullish hidden divergence sequence of higher highs, higher lows, correction of ABCD, higher lows on the chart, lower lows on the MACD histogram. And this is an indication for bullish hidden divergence. Once again, you can download below this video in the description our free ebooks. One of them is about the hidden divergences. And you can watch this video on the right top corner, uh, gives more information about hidden divergence. Uh, so, uh, we have a trend line here, we got a beautiful breakout right at the beginning of the session. This is classical, not, not every session it happens, and of course it delivers in that case fantastic move to the upside with better than 1:1 risk-reward ratio. Before that, we got this session. What do we have here? And this is a very important example. Uh, we had a bullish divergence— lower lows on the chart, higher lows on the MACD histogram and moving averages— but we do not have breakout above any trend line, above any high, or even no candles flip from lower highs, lower lows. Okay, until Here, only here we got the candles flipping. Okay, and what do I mean by candles flipping? From lower highs, lower lows, we suddenly have higher highs, higher lows here in these 2 green candles. As you can see, by the end of the session not much happened. It did not deliver even 1:1 risk reward, which means we cut out anyway. And once again, that's the reason I keep this example, so you can see that not every day is going to be perfect. It's very important to remember the market is not always perfect, and definitely the market would not care of what you want for during your session. But many times, as you can see, uh, during the US session, uh, especially in the majors and the major commodities, we have Great moves which deliver us opportunities. Another example, it was in the day before. So what do we have here? A bearish divergence before the US session. Higher highs on the chart, lower highs on the MACD histogram, flipping from positive to negative and lower positive. This is a bearish divergence. And then we got step breakout. High, low, high, low, high. Boom! Another low is breaking to the downside. Okay. Aggressive protection, conservative protection, and you set your targeting according to that. As I said, I love to aim to the next key levels. They are important, and if they deliver, I love to cash out there. If it didn't reach any target or didn't leave your desired Um, risk-reward. End of session, we are out of the game anyway, aiming for the next session. So this technique or this mechanical approach, um, helps with a very, very specific thing— what to watch, right? Because if we start to implement tons of other stuff, then it could be confusing and would basically make it harder for you to follow a very specific price behavior and a very specific thing at the beginning of the session. So I was presenting the gold. Of course, again, it could be any of the, uh, majors. Uh, again, beginning of the session, last divergence given. I love to work with 15 minutes. It could be also implemented on the 5 minutes. 15 minutes is a good time frame from my point of view for day trading. Um, to find more reliable divergence than like than 5 minutes or 1 minute, and more reliable breakout, because the bigger the time frame, the more reliable it is. 15 minutes give enough flexibility to trade during the session and to find reliable breakouts and candle reversals. So, uh, that's pretty much it for this video. As always, I hope you find value in watching that. Please don't forget to hit the like button if you do. And if you are new to our channel, please consider to subscribe, uh, to our channel with the subscribe button. If you have any questions, don't hesitate to ask in the comment section. And, uh, I also want to invite you to our trading family, Home Trader Club. Get your access to our full courses, real-time trading education, and real-time trading opportunities. Thanks for watching. Best to you and yours. I'll see you soon with more trading education and trading content and trading opportunities. Good trading. Bye for now.