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The opening jolt in Europe: is it worth taking the other side?

Posted: Tue Nov 03, 2026 7:18 am
by FXS London Scalper
Fading the first sharp move after the London open is a popular idea, because opening spikes often reverse. It's also one of the more dangerous ways to lose quickly.

Conditions where a fade has a better chance:
  • The spike runs into a clear level, such as the Asian high or yesterday's high.
  • No data due in the first hour.
  • The spike is fast but short, without follow-up candles.
Conditions to avoid:
  • A spike driven by news, for example a 07:00 UK release or overnight headlines.
  • A spike that breaks a multi-day range.
  • Spreads still wide when you want to enter.
Risk control: a fade needs a hard stop beyond the spike's extreme, and a time limit. If the reversal hasn't started within a few minutes, exit.

How to evaluate it: tag fades in your journal by condition and compare. Fades into levels without news should look clearly different from fades of news spikes; if they don't, the idea needs rethinking.

Do you fade the open, or trade with it?