Beginners

The Big Ben Forex Strategy – An Easy Forex Strategy For the London Market Opening

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The Big Ben strategy is an easy forex strategy that takes advantage of a common price action pattern that occurs with the opening of the European markets each day.  Using the strategy enables the intraday forex trader to identify when the first major directional move of the London session will occur, and to then take advantage of it!

This strategy is designed specifically for the GBP/USD (another reason why it is referred to as the “Big Ben” strategy). The time frame to begin observing the price movements of this currency pair starts with the Frankfurt opening (currently 1 a.m. EST, but  check  your world clocks first because sometimes it is 2 a.m. depending if it is daylight savings time or standard time). Begin monitoring the price at that time and be aware that the London market opens 1 hour later.

Trading volume is usually quite thin before London opens, so when the UK comes on board at that time, there is an obvious surge in trading. Observing for the Big Ben pattern allows you to take advantage of this time specific strategy.

The rules for this strategy are written below. The rules are written for trades going short on the GBP/USD, simply reverse the rules for long trades. The setup is simple:

1. Look for the pair to make a new low that is at least 25 pips from the Frankfurt opening.

2. Then look for the pair to reverse and trade 25 pips or more above the opening price.

3. Watch for the pair to reverse again to trade back below the intraday low from step 1 above.

4. Sell a break of at least 7 pips below the low.  Place the initial stop no more than 40 pips above the entry price.

5. As the pair moves lower, trail the stop.

This is a very effective strategy/price pattern to base your trading on.  Use it to assist yourself in siphoning more pips out of the market at this specific time of the trading day!

Have you discovered the forex strategy or strategies that are BEST for you? Visit Ann Pevey’s site http://www.fxstrategyhub.com for information on forex strategies, worldwide forex news, free forex training videos and more – all about FOREX.

Article Source: http://EzineArticles.com/expert/Ann_Pevey/261954

Article Source: http://EzineArticles.com/2402055

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