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.

This system utilizes the Open Range Breakout strategy in forex trade. When trade veers from a level trend into one of volatility, traders know it is time to become involved. Since the London forex market carries the most volume of trading and, since the first few hours after the London market opens are the most volatile, it is London that traders must watch.

Although London is first in volume, Tokyo, the lowest, must not be ignored. Day trading opens first in Japan, so the volatility or lack of volatility in Tokyo can determine which way trading will progress on the London market.

Since the volume of forex trade in London is so great and since the British Pound Sterling is the currency that generates the most volatility, this is the market that determines the daily exchange. Although New York ranks second to London in forex trade, traders should be aware that events or trends affecting the London market can be overcome by the time volatility is reached in New York.

The Open Range Breakout strategy has been around for generations. As with anything that has been around that long, it has been proven to be affective. Since this strategy is the cornerstone in the London Forex Rush System, it is easy to understand why this system is so highly respected among forex traders. By using this system and adhering to the strict parameters imposed, forex traders are relying more and more on this system to determine their daily trading strategy.