The strategy outlined here uses simple analysis of the daily ranges in a currency pair to set up an intraday trade in the direction of the trend established early in the New York forex trading session.

The strategy is based on three principles: 1) a market move has only two possible directions; 2) the market is in perpetual motion, and 3) the market completes certain trading ranges over certain periods of time (a day, a week, a month, or a year).