Trading the London – New York Session With Moving Average and ADX. The open of the London session at 3:00 AM is when many consider this type of behavior to be starting for the day in the FX Market. By many accounts, London is the heart of the FX market with approximately 35% of daily volume transacted during this session.
As the US (New York) session begins 5 hours later, the environment can change quite a bit as even more liquidity is entering the market; and this time it is coming from both sides of the Atlantic. For the purposes of this article, we are going to focus on the London session, before the US opens for business (3-8 AM Eastern Time).
The slower Tokyo market will lead into the London session, and as prices begin to come from liquidity providers based in the United Kingdom, traders can usually see volatility increase. As prices begin to come in from London, the ‘average hourly move’ on many of the major currency pairs will often increase.
This Moving Average and ADX system is very easy to catch and hold the big trends in London and New York session.
When to Go Long You can open a BUY position when the following happens:
- Trend Dynamic Index red line is above white line
- Both red and white line are above Yellow line
- Yellow line is above 50 (Optional for long term/Must for short-term)
- blue smHULL MAVG upward
- Slope Direction Line is blue
- ADX blue line upward and above 23 line.
When to go Short You can open a SELL position when the following happens:
- Trend Dynamic Index red line is below white line
- Both red and white line are below Yellow line
- Yellow line is above 50 (Optional for long term/Must for short-term)
- red smHULL MAVG upward
- Slope Direction Line is red
- ADX blue line upward and above 23 line.
If you try the above and you are patient, you will be forex trend following the right way, catch all the big trending moves and make big forex profits in London and New York Sessions.