Big Ben Strategy | Day Forex Trading Guide
Big Ben Strategy a new concept for every currency forex online trading. Methods of breakout day Forex trading range at the opening of a trading day has long been a favorite of traders in the intra-day trading in the stock market. This technique can effectively be used in the Forex market, especially when working with the British pound.
Day Forex trading in the market is definitely one of the most dynamic and risky trading techniques. High leverage (50:1 or 100:1) available in this market can significantly increase revenue trader, but exactly the same and increase the loss.
This makes the timing of trade in the most urgent and far more important for success in this market. Due to lack of data on the volume of day Forex trading, traders must develop a much more disciplined strategy, rather than at work in other markets that rely less on overall market dynamics and more on a specific price movement and the individual market “micro-structure.”
The day Forex trading strategy “Big Ben Strategy” is just such an approach to trade in market Forex. This technique of intra-day trading that takes advantage of changes in the trade in various market centers within the overall 24-hour trading on the Forex.
Day Forex trading strategy “Big Ben Strategy”
The strategy of “Big Ben Strategy” – a specific trading strategy on the foreign exchange market, intended to capture the first directional daily traffic, which often occurs during the first few hours after the Frankfurt/London trading session.
This strategy works best with a currency pair GBP/USD. Since this currency pair is trading is not as active outside London trading hours, a surge of activity in trading every morning in the UK gives her “real” market opening, the use of which is calculated strategy. The chart below shows that trade on the currency pair Pound / dollar is practically negligible during Asian trading hours.
However, when the London market opens, the pair Pound/Dollar is almost one-quarter of all trading on the Forex. Currency pairs with a continuous 24-hour day Forex trading will have smaller differences between opening and closing as they pass through the various financial centers.
For example, a couple of dollar/yen (USD/JPY), which dominates the Forex market during Asian trading hours (78% of total), it still accounts for 17% of the volume of trading during European hours.
On this basis, should be particularly closely monitor the movement of the currency pair GBP/USD during the opening of European day Forex trading hours. It is the dynamics of these hours may like to set the direction of trade, the development trend, and identify the trading range for the day. Specific marketing strategies used by traders may be different, as the range of applied aspects of technical analysis, it is important during activation of trades for this currency pair, and it must be considered.
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