EURUSD and GBPUSD Forex trading strategy(ICT concepts)

Risk disclaimer:

Trading always involves risk and may not be suitable for all investors. The Opening Price Manipulation strategy is no exception. Before implementing this strategy, traders should consider their investment objectives, level of experience, and risk appetite. It is important to use appropriate risk management strategies and never invest more than you can afford to lose. Any opinions, news, research, analysis, prices, or other information contained in this article is provided as general market commentary and does not constitute investment advice. The author and publisher of this article are not responsible for any losses incurred as a result of using this strategy or any other trading method.

Trading the foreign exchange market requires a comprehensive strategy that is flexible, adaptable, and based on sound logic. One such strategy that I have found to be effective in trading EURUSD and GBPUSD on the 5-minute chart is the Opening Price Manipulation strategy. In this article, we will explore how this strategy works and provide some tips for executing it successfully. Without wasting time let's dive deep.

Step 1: Identify the Opening Price

The first step in executing this strategy is to identify the opening price of the market. This can be done by using the New York time midnight opening price, which is the price at which the market opens in the United States. Once you have identified the opening price, you can use it as a reference point for the rest of the trading day.

After identifying the opening price, the next step is to determine the market bias. If the price is above the opening price, the bias is likely to be bearish, and if it is below the opening price, the bias is likely to be bullish. This bias is based on the assumption that market manipulation occurs first before distribution.

By proceeding traders should also look for confirmation of their market bias by waiting for the price to break a short-term low when bearish or a short-term high when bullish. This provides additional confirmation of the market bias and increases the probability of your idea.

To clarify, when the market bias is bearish and the price is below the opening price, traders should wait for the price to break a short-term low. On the other hand, when the market bias is bullish and the price is above the opening price, traders should wait for the price to break a short-term high. The image below shows exactly what we mean

By waiting for these confirmations, traders can reduce the likelihood of entering a trade prematurely and increase the probability of a profitable outcome. It is important to remember that trading always involves risk, and traders should use appropriate risk management strategies to protect their capital.

But where does our entry lie?

After the price breaks a short-term low or a short-term high, we want to look for what we call a fair value gap, what is that? a fair value gap is a state in price delivery where only one side of market liquidity has been offered. The good thing is that you don't need all this explanation to identify it in a price chart. The following image shows what a fair value gap (FVG) looks like in a rice chart

.That is a fair value gap, lets now illustrate what our complete setup looks like

The chartt below shows how your entry might look like

When setting your exit criteria, you should look for the nearest liquidity levels, such as old highs and lows. These levels are where the market has previously found support or resistance, and they are likely to attract buyers or sellers. You should set a take-profit order at these levels to lock in your profits when the market moves in your favor.

You can also use Daily Fundamental and Sentiment Indicators, on This strategy, this is optional, you can choose not to include any fundamental analysis to confirm your bias, but doing so can solidify your confluence and conviction for that trade idea.

To increase your chances of success, it is recommended that you use daily fundamental and sentiment indicators to confirm your trading decisions. Fundamental indicators can provide insights into the overall health of the global economy, and how it may affect the currency markets. For example, interest rates, inflation, and geopolitical events can all influence the value of EURUSD and GBPUSD.

Sentiment indicators, on the other hand, can provide information on the mood of the market participants. These indicators can be based on surveys of traders or market analysts, or they can be based on technical analysis of market movements. By using both fundamental and sentiment indicators, you can get a more comprehensive picture of the market and make more informed trading decisions.

When Executing the Opening Price Manipulation Strategy

1. Be patient: It is important to be patient when executing this strategy, as it may take some time for the market to move in your favor.

2. Use appropriate risk management: To minimize your losses, it is recommended that you use appropriate risk management strategies, by knowing exactly where to place your stop-loss orders and how big your position should be.

3. Stay up to date with market news: It is important to stay up to date with market news and events that may affect the price of EURUSD and GBPUSD, such as economic reports, geopolitical events, and central bank statements.

4. Practice: Like any other strategy, the Opening Price Manipulation strategy requires practice to execute successfully. You can use a demo account to practice your trading skills before trading with real money.

Conclusion

The Opening Price Manipulation strategy is a trading strategy for trading EURUSD and GBPUSD on the 5-minute chart, of course, it can be very useful in trading other asset classes as well it just depends on your asset preference by identifying the opening price and determining the market bias, traders can plan their trades accordingly and enter the fair value gap. By using daily fundamental and sentiment indicators, traders can confirm their trading decisions and set their exit criteria at the nearest liquidity levels.

However, it is important to note that no trading strategy strikes 100% and that losses may occur, this is all about high probability. Traders should use appropriate risk management strategies and stay up to date with market news and events to minimize their losses and maximize their profits. Practice is also crucial in mastering any trading strategy.

In conclusion, the Opening Price Manipulation strategy can be an effective strategy for trading EURUSD and GBPUSD on the 5-minute chart. By following the steps outlined in this article and incorporating daily fundamental and sentiment indicators, traders can increase their chances of success and become more profitable in their trading endeavors.

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Watch the video below and see a bullish example of exactly how we use this strategy daily. Go into your charts, it's there and It won't stop!