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MMTS 1
New York session usually starts with a lot of news releases at 8:30 am EST.
Because we get a lot of data from the financial world, there is a lot of momentum happening between 8:30-9:00 am time frame.
This momentum usually gives us a good sense of direction for the next few hours (given that there are no more major fundamental news releases happening at later time that day).
Knowing this, we can engage in trading the "news reaction momentum".
Here is how we need to approach this strategy:
1. Find out the highest and lowest price level that happened between 8:30 and 9:00 am EST.
2. Buy 4 pips above the high of the 8:30 am - 9:00 am time frame or sell 4 pips below the 8:30 am-9:00 am, whichever comes first.
If one of the 15-minute candles/bars from this time frame is larger than 50 pips, we do not trade this system.
For our target we will try to aim for 20 pips, or we may consider the next closes support or resistance level.
For our stops we are going to use the previous cycle high or cycle low. And we will place our stops 5 pips below/above these values (depending on the direction of the trade.
For example: if we sold, we need to put our stop 5 pips above the last cycle high, if we bought, we have to put our stop 5 pips below the last cycle low
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