This article looks at the use of forex trading strategies that work with the European market open.

When you learn about forex trading you will be told about the different forex trading strategies that you can use.  You should also be told about the importance of timing when you are trading.  If you do not trade at the right time then you are not going to be able to make a profit on the market.  When you combine certain strategies with certain time periods you can create forex trading strategies that offer you a lot of potential profits.

Using the European Open

When you look at combining the times and the forex trading strategies then you should consider the European open.  The European open is the time when the European market session begins.  You should use the market opening because this is generally one of the most volatile times on the market.

When the market session opens the major players on the market are going to be placing their trades.  This increases the liquidity of the market and the volatility.  Of course, there are certain currency pairs that you should be looking for and certain movements that you have to see with this strategy.

Which Currency Pair?

When you trade on the European open you should look at trading on the US dollar and British Pound currency pair.  This currency pair is one of the best to trade at this time.  The primary reason for this is that the currency pair is not heavily traded before this market session.  This means that when the market session opens the currency pair becomes volatile.

This is added to the already volatile nature of this currency pair.  The currency pair offers large swings in the market which is ideal for the forex trading strategies that work with the European market opening.

What to Look for in the Market

To trade on the forex market you have to know what you need to look for.  This information will tell you whether or not the market conditions are right for the trading that you want to complete.  When you look at the US dollar and British Pound currency pair you have to look for movement just after the opening of the market session.

This movement is a swing of 20 to 40 pips above or below the opening price at the start of the session.  When you see this movement you will then have to look for a similar movement afterward.  This range of movement is essential to the strategy and you should not trade if you do not see this movement.

You are going to be trading on a break out and you have to have the range of movements to form the break out area.  The stop loss that you have to place should be at 40 pips from your entry.  This is the maximum swing movement that you see on the market.

If you see a movement that is greater than 40 pips you should not actually trade.  Swings in the market that are thins great will not work very well with the European market open forex trading strategies.