Forex trading on the levels of session openings and levels calculated according to certain algorithms has high priority. Since the horizontal lines primarily determine the maxima and minima, the degree of importance of using indicators with such analytic properties is quite high. A clear example of such an analytical tool is a Ku Klux indicator. Its operating principle is that it defines the orders opening levels based on the time of the trading session opening. Meanwhile, the indicator can be adjusted by focusing on any session or even opening of a particular exchange.
The image shows Ku Klux indicator with its nine lines. The one in the middle, shown as white dashed line, is the mark of the session opening. Above it, the second green line is the level of the pending order to buy. Next to it, also green, is also a pending level to buy. And the last dashed line, the uppermost, is profit level on the orders to buy.
The level to sell is calculated and shown in the same way. The second pink line from the white one is a pending to sell. Another level to sell follows it. The bottom line is the level of profit. The stops are placed on the opposite side of the order opening direction. They are the first lines from the central white line. The buy is a full yellow line below the white dashed line. The sell one is a full orange above the main white line.
Actually, everything here is simple and clear, and there is nothing new. Trading is carried out by the same old rules as always. If moving upwards, an order to buy is triggered and if it comes to profit, we’ll get profit. If not, it will turn back and close at a small stop. Sell orders work by the same principle.
The key point is that the Ku Klux indicator shows fundamental base of session opening level. This makes it impossible to use the indicator on the daily and longer time intervals. It means that the session opening during the day should be an incentive to reflect market behavior. And this happens best on hourly and M15 chart.
Another advantage of this analytical tool is the possibility of setting the selected session as the base. Software settings allow choosing the desired session. However, it should be noted that correlation between them is very strong, and the quietest period is the small one, which precedes the opening of the very first session. In such a way, the best option there is setting Pacific region. However, this can be a moot point and you can choose the most liquid or any other session offered by Ku Klux indicator as a priority.
Anyway, level trading based on data on a particular session opening is quite reasonable. The only thing worth noting is that the Ku Klux indicator shouldn’t be used on its own, but rather combined with some other analytical tool.