Asian session range scalping: the spread eats the range

[Amanhasnoname]

The Asian session often forms a clean range, which attracts mean reversion scalpers. The ranges are real, but the economics are tight.

On EURUSD, the Asian range might be 20 to 30 pips over several hours. Spreads are wider than in London, say 0.6 to 1 pip, and the number of tradeable swings is limited. A scalp inside the range might target 4 or 5 pips, with the spread taking a fifth of that.

Yen crosses and AUD pairs have more activity in this period, since their home markets are open. The ranges are larger and more tradeable.

Another consideration is the end of the session. The London open often breaks the range, so late Asian trades risk getting caught by the breakout. Having a hard stop time before London is a sensible rule.

Selecting the right pair for the session matters more than the technique.

Which pairs do you trade in Asia, and do you leave before London starts?