Morning 10 AM Forex Trading Strategy - A Step-by-Step Guide

Good morning, traders! Today at Forex Kite, we’re diving into a strategy that has shown remarkable consistency and potential for profitability: the Morning 10 AM Forex Trading Strategy. This strategy leverages the increased market volatility and liquidity often seen around 10 AM, making it a prime time for capturing significant moves.

Step 1: Chart Setup on TradingView

  • Time Frame: Begin by setting your TradingView chart to a 15-minute time frame. This provides a good balance between short-term visibility and avoiding the ‘noise’ of lower time frames.
  • Indicators: Add the following indicators to your chart:
    • Exponential Moving Averages (EMAs) - Set one EMA to 50 periods and another to 100 periods. These will help identify the trend direction.
    • Relative Strength Index (RSI) - Set to a 14-period. This will aid in gauging market momentum.
    • Bollinger Bands - Default settings (20,2). Useful for identifying overbought and oversold conditions.
  • Currency Pairs: Focus on major currency pairs like EUR/USD, GBP/USD, and USD/JPY for better liquidity and tighter spreads.

Step 2: Identifying the Trade Setup

  • Look for a clear trend direction using the EMAs. The 50 EMA above the 100 EMA indicates an uptrend, while the reverse indicates a downtrend.
  • Wait for the currency pair’s price to approach the Bollinger Bands, which often signifies a potential reversal point.
  • Use the RSI to confirm the trade. An RSI below 30 suggests an oversold condition in a downtrend, and above 70 indicates an overbought condition in an uptrend.

Step 3: Entry Points, Stop Loss, and Take Profit

  • Entry Point: Enter a buy trade when the price touches the lower Bollinger Band in an uptrend or a sell trade when it touches the upper Bollinger Band in a downtrend.
  • Stop Loss: Set the stop loss just below the recent swing low for a buy trade or above the swing high for a sell trade.
  • Take Profit: Aim for a 2:1 risk-reward ratio or exit the trade when the price touches the opposite Bollinger Band.

Step 4: Risk Management

  • Never risk more than 1-2% of your trading capital on a single trade.
  • Adjust your position size accordingly to ensure proper risk management.

Conclusion:

The Morning 10 AM Forex Trading Strategy is a powerful approach that takes advantage of specific market conditions. Remember, no strategy guarantees success, and it’s crucial to backtest and practice on a demo account before going live.

Stay disciplined, and happy trading!