The London Open system

[vmcd62]

Originally Posted by techno79

Looks like a really good play last night. I'm not sure if I would've gotten stuck in the 2:15 candle or the better candle which was 3am perfect, almost. To me there was a fake out at 2:15 with a slight retracement.
I'm just mad that the first time in probably 2 weeks I decided not to check or watch, and it happened perfectly!

Doh!...and I mistakenly was talking about a perfect setup THIS morning, but I was referring to the morning of 1/30...which was being discussed already...though this morning looked good too...a down first then up, followed by the true down move..

[vmcd62]

If you can stay awake, this "system"..or this market behavior..appears to happen quite often...like this morning also...

[topgun]

In the documentation they use 5 min charts but this morning's move looks great on a 15 min chart. Is there a rule of thumb as to what time frame works but with this method?

Originally Posted by vmcd62

If you can stay awake, this "system"..or this market behavior..appears to happen quite often...like this morning also...

[vmcd62]

Originally Posted by topgun_68

In the documentation they use 5 min charts but this morning's move looks great on a 15 min chart. Is there a rule of thumb as to what time frame works but with this method?

I personally haven't made a trade with this one yet...but it appears that the rules talk about absolute moves of a certain number of pips going up and and coming down..which would trigger a trade on most time frames under 30 minutes..it looks to me like the moves can last at least 30 minutes...so I would think you could use a 15-min bar..try it out and let us know...I like this one...but, I need my sleep..

[pipless]

Nameless, just reading your experience of this trading method and had a quick question. Why was it that you entered a long trade at 1.96284? I was under the impression that for Big Ben trades should be entered once a new range high or low has been breached. Or was it simply that you were trying to catch the wave up to the new high after seeing that the new low had already been set?

[vmcd62]

It happened again...range low of 1.9689 made around 0130 EST(although the move down wasn't 25 pips)..and then a move up to 1.9722..and then broke the range low bar on the 0430 EST bar(30 min chart)...and went down to a new low of 1.9672. After about 3 hours of staring at the screen, you would made a whole 17 pips if you caught the entire move down below the range low.

I'm sure someone can come up with a better way to take advantage of this frequent occurrence, i.e., catch more of the move...or ride the retracement back up after the low is made.

[nameless]

I may be mistaken but my understanding on the "bigben system" and my random checking of historical charts gives me the impression that with the Frankfurt opening an hour before London, activity starts at around 7am and the general trend is usually long for the first hour until London session opens then around 8am (sometimes slightly later) the trend heads back down, my observations so far show the down trend to take anything from 10minutes to 2hours before it starts to settle down.

being new to Forex and because i am using a demo account and not real money i had the comfort of just messing around practising setting stop losses and was a bit to eager in setting a stop loss too close to the current price on the initial longtrade with a bit of afterthought i should have set it a bit lower and would have released more pips on the rise.

p.s traded this system again today making 12 pips on the long trade between 7am and 8am (gmt) and 5 pips on the short trade between 8am and price action hiting the emergency stop loss at 9:15 am (locking in the 5 pips) allthough it had been lower and again went down lower still.

but as a noob im happy with 17 pips for these trades.

p.s im unsure of why the market behaves this way if anyone could clarify why the long trade 7am-8am and then short 8am>10ish