Methodology for trade breakthrough trading ranges at the opening bid was a long time favorite for traders in the intra-day trading on the stock market. This technique can effectively be used in the foreign exchange market, especially when working with the British pound.
Christian Kerr
Within-day trading in the market Forex (or inter-bank foreign exchange market) is definitely one of the most dynamic and risky forms of trade. High leverage (50:1 or 100:1) available in the market, can significantly increase the profit the trader, but exactly the same and increase the loss.
This makes the timing of trade most important and far more essential to success in this market. Due to lack of trading volume in the market Forex, traders must develop a much more disciplined strategy than you would in other markets that rely less on overall market dynamics and more specifically on the price movement and the individual market "micro-structure."
The strategy of "Big Ben" is precisely such an approach to the trade market Forex. This technique of intra-day trading, which takes advantage of changes in trade in various market centers in the overall 24-hour trading in the market of Forex.
The strategy of "Big Ben"
The strategy of "Big Ben" - is a specific strategy for trading in the foreign exchange market, intended to capture the first track daily movements, which often occurs during the first few hours after opening the Frankfurt / London auctions, which begin at 10-11 am Moscow time.
This strategy works best with the currency pair of the British pound / U.S. dollar (GBP / USD). Since this currency pair is traded is not as active outside London trading hours, a surge of activity in trade every day in the UK gives her "real" market opening, to the use of which is the strategy. The diagram below shows that trading on the currency pair Pound / dollar is practically insignificant during Asian trading hours. However, when the London market opens, a pair of pound / dollar took a nearly one-quarter of all trade in the market of Forex. Currency pairs with a continuous 24-hour trade, will have smaller differences between the opening / closing, as they pass through the various financial centers. For example, a pair of dollar / yen (USD / JPY), which dominates in 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 at the opening of European trading hours. It is the dynamics of these hours may be as set the direction of trade, with the development trend, and identify trading range for the day. Specific marketing strategies used by traders, may be different, as the range of aspects of technical analysis, it is important to time the revitalization of trades on the currency pair and this should be taken into account.
Christian Kerr
Within-day trading in the market Forex (or inter-bank foreign exchange market) is definitely one of the most dynamic and risky forms of trade. High leverage (50:1 or 100:1) available in the market, can significantly increase the profit the trader, but exactly the same and increase the loss.
This makes the timing of trade most important and far more essential to success in this market. Due to lack of trading volume in the market Forex, traders must develop a much more disciplined strategy than you would in other markets that rely less on overall market dynamics and more specifically on the price movement and the individual market "micro-structure."
The strategy of "Big Ben" is precisely such an approach to the trade market Forex. This technique of intra-day trading, which takes advantage of changes in trade in various market centers in the overall 24-hour trading in the market of Forex.
The strategy of "Big Ben"
The strategy of "Big Ben" - is a specific strategy for trading in the foreign exchange market, intended to capture the first track daily movements, which often occurs during the first few hours after opening the Frankfurt / London auctions, which begin at 10-11 am Moscow time.
This strategy works best with the currency pair of the British pound / U.S. dollar (GBP / USD). Since this currency pair is traded is not as active outside London trading hours, a surge of activity in trade every day in the UK gives her "real" market opening, to the use of which is the strategy. The diagram below shows that trading on the currency pair Pound / dollar is practically insignificant during Asian trading hours. However, when the London market opens, a pair of pound / dollar took a nearly one-quarter of all trade in the market of Forex. Currency pairs with a continuous 24-hour trade, will have smaller differences between the opening / closing, as they pass through the various financial centers. For example, a pair of dollar / yen (USD / JPY), which dominates in 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 at the opening of European trading hours. It is the dynamics of these hours may be as set the direction of trade, with the development trend, and identify trading range for the day. Specific marketing strategies used by traders, may be different, as the range of aspects of technical analysis, it is important to time the revitalization of trades on the currency pair and this should be taken into account.Forex Magazine
based on www.activetradermag.com
based on www.activetradermag.com
1 comment:
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