Forex - Trading the European or the London Session
In each typical forex trading day, there are 3 sessions that overlap and follow one after another (except in the cases where there’s a holiday for that particular region). And these 3 sessions are most commonly known as the Asian session (this is the first one that kickstarts) followed by the European or U.K or London session and then finally the U.S (American) session.
We’ll take a look at the London session this time round (check out the article on Asian session if you haven’t done so already).
The European or London session starts around 8am GMT since the eastern Europeans and the Prussians would have gotten part of the momentum going already. Every so often, you’ll see one of two patterns that emerge.
The first one would result in the market moving in 1 direction for a little while (1 to 2 hours) only to fake the market and then to do a quick round turn and move strongly in the opposite direction. These fakes are called bull head fakes or bear head fakes.
The second one is much easier to see because the market would generally not have any time to do any fakes and would quickly move in their intended direction very quickly and decisively. Each time you see the second pattern emerging, all you need to do is quickly get into it and ride on it. Never forget your stops though just in case you’re wrong about the whole thing.
Always bear in mind that you should lose little when you’re wrong but you want to make as much as possible when you’re right. That’s how you start getting yourself on the profitable side of things.
Of the 3 sessions we’ve mentioned earlier, I tend to like the European session the best because that’s where most of the trading liquidity and volume is. At the end of the day, trade whichever session you enjoy and profit from the most.
