AsianRange

The Asian range is the highest and lowest prices established during the Asian trading session, used as a key support/resistance level and breakout reference for subsequent London and US sessions. It’s foundational for session-based and breakout trading strategies.

Understanding the Asian Range

The Asian range emerges from the quietest forex session:

Asian Session Characteristics:

• Hours: 21:00 UTC to 08:00 UTC (roughly). In EST: 16:00 Tue to 03:00 Wed.
• Activity: Tokyo open is most active; Sydney/New Zealand gradually fades.
• Volume: Lowest of the three main sessions (London and US are busier).
• Volatility: Smallest ranges, tightest consolidation.
• Pairs: JPY pairs most active; other pairs consolidate.

During this quiet period, price establishes a range (Asian high and Asian low). This range becomes the structural foundation for more volatile London and US sessions.

Example:

• Asian session: Price ranges 1.1050 (high) to 1.1000 (low). A 50-pip range.
• This becomes “Asian range” for the day.

How Asian Range Functions as Structure

London and US traders reference Asian range because:

1. Overnight structure — Asian range tells you where price settled overnight. It’s the foundation for the day’s structure.

2. Support/Resistance — Asian range high acts as resistance; Asian range low acts as support. If broken, it signals institutional movement.

3. Breakout target — London traders often target breakouts above Asian range high or below Asian range low. These are mechanical trade setups.

4. Stop hunt zone — Institutions know retail traders track Asian range. They often push through Asian range high/low to trigger stops, then reverse.

5. Context for larger moves — If London breaks above Asian range high, the move is more significant than if it was just a small bounce within the range.

Practical Example: Trading Asian Range Breaks

Setup:

• Asian session: High at 1.1050, Low at 1.1000
• Overnight Europe is quiet; price holds range

London session opens (08:00 UTC):

• Price opens at 1.1030 (inside the range)
• Traders are watching: will London break above 1.1050 or below 1.1000?

Scenario 1: Breakout above Asian high

• Price pushes to 1.1055, breaks above 1.1050 with conviction
• London traders buy the breakout, targeting further extension (1.1100, 1.1150)
• Often works: breaking above Asian range high often leads to 100+ pip runs

Scenario 2: Breakdown below Asian low

• Price drifts below 1.1000, closes at 1.0990
• London traders short the breakdown, targeting 1.0950, 1.0900
• Often works: breaking below Asian range low often leads to further downside

Scenario 3: False breakout (stop hunt)

• Price wicks above 1.1050 to 1.1060, triggering stops of short traders
• Then immediately reverses back into 1.1050-1.1000 range
• Price bounces back above 1.1050, surprising shorts who got stopped out

Multiple Asian Ranges

Not every night has a single tight range. Sometimes:

• Wide Asian range — Price swings 100+ pips during Asian hours. Creates wider support/resistance levels.
• Multiple consolidations — Asian session has 2-3 separate ranges (Sydney range, then Tokyo range). Both become reference levels.
• Overnight news — Major news can cause gaps at London open, invalidating the previous Asian range briefly.

The principle remains: the Asian range is the overnight structure; London/US session action relative to this range is tradable.

Asian Range vs Fair Value Gaps

These concepts are different:

• Asian range — The boundaries (high/low) of the Asian session
• Fair value gap — An imbalance within candles (between wicks)

Fair value gaps can occur within the Asian range, or across the Asian range boundary. Asian range is broader structure; FVGs are specific imbalances.

How to Track Asian Range Breaks in Your Journal

In PipJournal, log Asian range activity:

• Asian range high/low — Record exact price levels each night
• London breakout — Did London break above Asian high, below Asian low, or stay inside?
• Breakout strength — If breakout occurred, how strong was it? (Soft break = small body, long wicks; hard break = large body, minimal wicks)
• Your trade — Did you enter the Asian range break? Long above high, short below low?
• Extension — How far did the breakout extend? (50 pips, 150 pips, more?)
• Result — Hit target, hit stop, or reversed?

Analyze:

• Break rate — What % of Asian ranges are broken during London session? If 60%+, breaking Asian ranges is a viable strategy.
• Pair-specific patterns — Do some pairs (like GBP/USD) break Asian ranges more predictably than others? EUR/USD sometimes breaks, sometimes reverses into the range.
• Extension distance — On your pairs, what’s the average extension after breaking Asian range? EUR/USD might average 80 pips; GBP/USD might average 150 pips.
• False break rate — What % of Asian range “breakouts” reverse back into the range? High false break rates = need more confirmation before entering.

Trading Strategy: Asian Range Breakout

Simple strategy:

1. Mark Asian range — Identify high and low from the Asian session
2. Wait for London — Watch how London session approaches the range
3. Confirm breakout — Price breaks above high (or below low) with a strong candle closing beyond the level
4. Enter breakout — Enter in the breakout direction, targeting the next zone or an FVG
5. Stop — Place stop beyond the opposite side of Asian range (for safety margin)

Example:

• Asian range: 1.1050-1.1000
• London breaks above 1.1050 with strong candle, closes at 1.1060
• Enter long, stop at 1.0990, target at next resistance (1.1100 or FVG at 1.1070)

Common Mistakes

• Confusing Asian range with daily range — Asian range is only the overnight low-to-high. Daily range includes London/US additions. Use appropriate terms to avoid confusion.
• Trading inside Asian range — Asian range alone (without breakout) is choppy and low-probability. Trade the breaks of the range.
• Ignoring overnight gaps — Major news can cause gaps at London open. Previous Asian range high/low might not be relevant if there’s a 50-pip gap.
• Oversizing Asian range breaks — False breaks happen frequently (stop hunting). Size appropriately; use stops and profit-taking discipline.
• Using Asian range as the only confirmation — Combine Asian range breaks with other signals: candle pattern, moving averages, order blocks, FVGs for higher probability.

Advanced: Multi-Session Asian Ranges

Some traders track:

• Daily Asian range — Previous night’s high/low
• Weekly Asian range — Previous Friday’s Asian range (used for Monday/Tuesday trades)
• Monthly Asian range — Previous month’s last Asian range (used for first days of new month)

Larger timeframe Asian ranges = stronger levels.

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See also: Session High/Low, Killzone, Break of Structure