Utilizing the Open Range Breakout strategy, the London Forex Rush System, capitalizes on the volatility of the London market in the first few hours of trading. Since the London market, which opens at 3 am EST or 8 am London time, overlaps trading on the Tokyo market by one hour, traders, who are familiar with how trading faired in Tokyo, are able to calculate their trading strategy for the day. Since the London market is the largest forex trading market in the world, this is the one traders must become involved in. By calculating strategies based on trading in Tokyo and the volatility in trade during the first few hours after the opening of the London exchange, forex traders can manage their portfolios within a relatively safe two-hour bracket. Although New York markets are second only to London in volume of forex trading, it is London that sets the daily trend in the forex market. Tokyo may be the weakest market in the volume of currency traded, but because they are the first market opening for trade, traders cannot ignore beginning trends there. Often, the volatility or lack of volatility in Japan will determine trading trends for the day. London may set the trend, but Tokyo’s participation in the market cannot be ignored. If a forex trader notes that trading on the London market does not break out, the computer should be turned off and trading should be postponed for another session. But if a breakout occurs, a trader has a window of a few hours to harness this volatility and shore up his portfolio before closing down for the day.
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