This trade is based on a successful Forex trading strategy and it is a great tool to gain advantage of the markets before you even go to work as it works best between 3-4 am EST.
The premise is to determine the daily market high and low, which according to this strategy, is established between the 2-5am EST times (when the London market opens). The opposite daily high or low will occur between the hours of 8am-2pm EST after the Opening of the New Your Market. One of the main rules to remember is that if you can’t find a well defined low or high by 5:00 am, you should avoid applying this strategy on that given day.
If you are wondering why does this happen, you should know that at 3:00am EST the London and the BOE open and it overlaps with the last hour of the Tokyo Trading Day. Due to this huge volume of transactions a noticeable bullish or bearish move is established. As a result a binary proposition is formed.