The Big Ben technique is a straightforward foreign exchange technique that takes benefit of a standard value motion sample that happens with the opening of the European markets every day. Using the technique allows the intraday foreign exchange dealer to establish when the primary main directional transfer of the London session will happen, and to then make the most of it!
This technique is designed particularly for the GBP/USD (another excuse why it’s known as the “Big Ben” technique). The timeframe to start observing the value actions of this forex pair begins with the Frankfurt opening (presently 1 a.m. EST, however verify your world clocks first as a result of typically it’s 2 a.m. relying whether it is daylight financial savings time or customary time). Begin monitoring the value at the moment and bear in mind that the London market opens 1 hour later.
Trading quantity is often fairly skinny earlier than London opens, so when the UK comes on board at the moment, there’s an apparent surge in buying and selling. Observing for the Big Ben sample means that you can make the most of this time particular technique.
The guidelines for this technique are written beneath. The guidelines are written for trades going brief on the GBP/USD, merely reverse the foundations for lengthy trades. The setup is straightforward:
1. Look for the pair to make a brand new low that’s no less than 25 pips from the Frankfurt opening.
2. Then search for the pair to reverse and commerce 25 pips or extra above the opening value.
3. Watch for the pair to reverse once more to commerce again beneath the intraday low from step 1 above.
4. Sell a break of no less than 7 pips beneath the low. Place the preliminary cease not more than 40 pips above the entry value.
5. As the pair strikes decrease, path the cease.
This is a really efficient technique/value sample to base your buying and selling on. Use it to help your self in siphoning extra pips out of the market at this particular time of the buying and selling day!
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