VIDEO: Chart Review Going Into Tokyo Session

Video review of charts going into Tokyo. Quiet time of the trading day, so not a lot of exciting setups to look at. I will try to get videos posted prior to London and Tokyo sessions, on a more regular basis.

What is setting up that wasn't so clear as I was recording the video, is a Consolidation forming on the Cable and the EURUSD. Consolidations for this time of day are normal, because there are no major markets open. NY closed 2 hours ago, so the volume decreases, and so does the swing in prices, so they start to squeeze. Once Tokyo opens, price needs to move somewhere so, they will break, it is just a matter of "how far." This is the reason I like trading the openings of the major markets. You know the prices will move, and if it is in a tight range or a squeeze, you can expect a break. It is just a matter of "when" and "how far."

There is some news coming out at the beginning of the Tokyo session, primarily Trade Balance numbers, so be aware if you have open trades. Check the calendar at the bottom of the page for the exact times.