The Big Ben Foreign Exchange Technique – An Simple Foreign Exchange Technique For the London Market Opening
The Big Ben technique is a simple FX technique that takes benefit of a typical value motion pattern that happens with the opening of the European markets every day. Utilizing the technique allows the intraday FX dealer to establish when the primary main directional transfer of the London session will happen, and to then reap the benefits of it!
This technique is designed particularly for the GBP/USD (one more reason why it’s known as the “Big Ben” technique). The time-frame to start observing the value actions of this currency pair begins with the Frankfurt opening (at the moment 1 a.m. EST, however, test your world clocks first as a result of generally it’s 2 a.m. relying on whether it is daylight financial savings time or commonplace time). Start monitoring the value at the moment and bear in mind that the London market opens 1 hour later.
Trading quantity is normally fairly skinny earlier than London opens, so when the UK comes on board at the moment, there’s an apparent surge in trading. Observing the Massive Ben pattern lets you reap the benefits of this time particular technique.
The principles for this technique are written beneath. The principles are written for trades going short on the GBP/USD, merely reverse the principles for long trades. The setup is straightforward:
- Search for the pair to make a brand new low that’s not less than 25 pips from the Frankfurt opening.
- Then search for the pair to reverse and trade 25 pips or extra above the opening value.
- Look ahead to the pair to reverse once more to trade again beneath the intraday low from step 1 above.
- Sell a break of not less than 7 pips beneath the low. Place the preliminary cease not more than 40 pips above the entry value.
- Because the pair strikes decrease, the path the cease.
It is a very efficient technique/value pattern to base your trading on. Use it to help your self in siphoning extra pips out of the market at this particular time of the trading day!