ICT Asian range is an MT4 forex indicator that shows the price range during the Asian trading session. Retail forex traders use this information for inner circle trader forex strategy. ICT means inner circle trader strategy. The well-known forex strategy among retail forex traders is based on understanding different market price sessions in trading.
What is the ICT Asian Range Indicator?
Probably, you’ve heard of the ICT trading approach. The approach entails trading in accordance with the Asian session. Prior to witnessing dramatic price movement throughout the London and New York sessions, the forex market often consolidates during the Asian session. As a result, adopting the ICT technique for trading necessitates a detailed comprehension of the four trading sessions’ market activity. It aids in trading breakouts from the Asian session. The indicator creates colored boxes that aid traders in trading the breakout to the upside or downside. Only after the price departs from the box do you need to enter the trade.
Shorter time frames like one hour, fifteen minutes, and five minutes are the optimum for using the ICT Asian Range indication. The indicator can be used to trade currency pairs that include the Japanese yen. The indicator is most effective for the USD/JPY, EUR/JPY, GBP/JPY, GBP/USD, and EUR/USD pairs. In essence, breakout trading will benefit the most from the indication.
For inexperienced traders, the ICT Asian Range indicator is appropriate. You don’t need to commit the time the Asian range forms to memory. After the price exits the consolidation in the Asian market, all you have to do is recognize the range that the indicator has defined and place your trade.
It is wise to use the indicator in conjunction with other plans and resources. For instance, you might want to combine a retouch/retest method with the ICT Asian Range indication. The price will retest the consolidation period at which point you will enter.
- The ICT AR indicator is designed to be easy to use and understand, making it suitable for traders of all levels of experience.
- It is a flexible tool that can be used in a variety of market conditions, including trending and ranging markets.
- It is designed to be used in conjunction with other analysis techniques, such as fundamental analysis, to provide a more comprehensive view of the market.
ICT Asian Range Strategy
Buy Signal
- A bullish signal occurs when the price breaks above the high of the range indicated by the upper line.
Sell Signal
- A bearish signal occurs when the price breaks below the low price of the range.
ICT Asian Range Indicator Pros & Cons
The ICT Asian Range Indicator can help traders to develop an edge in the market by providing signals for entering and exiting trades at strategic times. It can also help traders to identify and follow trends in the market, which can possibly increase the chances of making profitable trades.
Pros
- The ICT AR indicator is easy to use and understand, making it suitable for traders of all levels of experience.
- It can be used in a variety of market conditions, including trending and ranging markets.
- It is designed to be used in conjunction with other analysis techniques, providing a more comprehensive view of the market.
Cons
- The ICT AR indicator is a trend-following strategy, which means it may not perform well in choppy or sideways markets.
- It relies on historical data, which may not always accurately predict future market movements.
- It may produce false signals, leading traders to make incorrect trades.
Conclusion
ICT is one of the most popular trading methods today. Some individuals, however, are unaware of what ICT is or how to use it. To find potentially successful trades based on the ranging Asian market, the ICT Asian Range indicator is an option. However, it is essential to keep in mind that no single strategy is foolproof and it is always advisable for traders to use multiple analysis tools and techniques to make informed trade decisions.
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