The London open: the first fifteen minutes are a different game

[Amanhasnoname]

Many scalpers wait for London to open, expecting good volatility. The first few minutes often disappoint those who rush in.

Right at the open, liquidity ramps up and spreads can still be wide. Price often makes a sharp move that breaks the Asian range, then reverses. These early moves have a high failure rate, partly because stops placed beyond the Asian range get run.

Waiting 15 to 30 minutes lets the initial chaos settle. Direction usually becomes clearer, and spreads tighten.

Some traders deliberately trade the false break, fading the first move once it fails. Others skip the first quarter hour entirely and trade the established direction.

Differences between pairs matter. GBP pairs react strongly to the open, while EURUSD can start more slowly. Yen crosses may already have moved.

A study of the last 100 London opens on the pair traded will show how often the first move holds.

How soon after the London open do you start trading?