The Asian session is typically the quietest of the three, and price often drifts sideways in a relatively tight overnight range. That range becomes a reference: the high and low it prints are levels that later, busier sessions frequently test and break.
The idea behind the setup
The logic is that a quiet range stores energy. When London or New York arrives with real volume, price may break the range and run. A common approach marks the Asian high and low as a box, then waits for a decisive break beyond one edge to signal the day's direction.
Entry, stop and the honest catch
An entry can be taken on a candle close beyond the range edge, or on a retest of that edge with a tighter stop. The stop logically sits back inside the range, since a return there means the break failed. The honest catch is the false breakout: ranges are magnets for stop hunts, and price often pokes beyond one edge only to reverse hard.
- Mark the Asian high and low as a box before London opens.
- Entry: a decisive close beyond an edge, or a retest of it.
- Stop: back inside the range — a return means the break failed.
- False breaks are common; a close-based filter helps but never eliminates them.
The Asian range stores energy for later sessions — but its edges attract false breaks, so define failure before you enter.