I have what is most likely a simple answer, but I’m still curious…why are there often huge swings as soon as the markets open? The forex market is open almost always and I have trouble believing that there are armies of mega companies and banks just waiting for 9 am to roll around to move on something, like they’re some sort of creatures that can only come out at a certain time else they turn to ash. Any ideas or real simple explination?
There is one real open in FOREX for me and it is 0100 to 0230 EST. That is when the major banks in London open there books for the day. They tend to gun for orders then settle in to a trend for the day. This is explained very well in several books about the market.
There are times of the day when the books are “fixed.” These times in EST are 0200, 0700, 1000, and 1900. You may see abnormal price movements during these times.
The size of a swing at open is relative to your perspective of the price action.