As part of your Forex trading education,
learn to analyze market conditions around London open and begin to
recognize good setups.
The following questionnaire and checklist
London Open Preparation
About 15 to 30 minutes before London open
check the answers to these questions:
Note price in relation to the 200 EMA (Exponential Moving
Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the
trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour
chart but below it on the 15 minute? Then be prepared for price to go long
at some stage. (Draw the opposite conclusion if price is below the 200 EMA
on the 4 hour and 1 hour chart but above it on the 15 minute
Are any Economic Reports imminent?
Within a few minutes of London open, if you
see a number of factors converging from the analysis above, make a
decision one way or the other:
Carrying out an analysis in this way each
day at London open will do much to increase your Forex trading education.
It will make you aware of what is happening
on the charts and in the marketplace and help you to arrive at
There is no magic formula involved with
Forex trading education. Put simply, successful Forex trading is the
result of years of hard work, study, practice, and experience often gained
through painful trading scenarios.
Eventually the newer trader learns mental
discipline, and how to control the emotions - probably the biggest part of
a Forex trading education.
Practice a procedure like the one above day after
day and begin to see some progress as you get nearer the time you
make profits consistently from currency trading.
by Michael A. Jones