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Is the First Hour After the London Open a Fakeout?

False — with one real exception.

The claim as it is usually statedAvoid the first hour after the London open — it is a violent fakeout.

Movement at the London open is bigger in only 2 of 19 markets. EUR/USD — the pair the claim is usually made about — moves 90% of its normal size in its own open hour. The exception is GER40 at 123%, which is no coincidence: that hour is also the Frankfurt cash open.

What the data shows

Across 19 markets: direction: 5 of 19 markets differ beyond chance · movement: bigger in only 2 of 19. Median movement in the window, 89% of a normal hour.

MarketIn the windowRestzMovementSamples
Silver (XAG/USD)48.0%50.3%-4.2108% of normal10,393
EUR/USD50.6%48.7%3.790% of normal11,804
USD/CHF47.9%50.5%-3.6108% of normal6,446
EUR/JPY51.3%49.9%2.7104% of normal10,450
GER40 (DAX)50.1%51.7%-2.2123% of normal5,400
USD/CAD50.9%50.1%1.584% of normal11,836

Strongest six by statistical strength, whichever way they point. z measures how far from chance a result sits — we treat |z| ≥ 3 as significant, and print it even when it is nowhere near.

Who says it

BabyPips · Audacity Capital

How this was measured

Every claim here reduces to a window on the clock or the calendar, so it can simply be checked. We compare the claimed window against the rest of the week on 23 years of hourly data across 19 markets, measuring two separate things the folklore tends to conflate: direction (does the window close higher more often?) via a two-proportion z-test, and movement (is the average move bigger or smaller?). A window can be perfectly ordinary in direction and genuinely quieter in movement — saying which is the entire point.

The bar here is |z| ≥ 2, deliberately more lenient than the |z| ≥ 3 this site applies to its own numbers: when testing someone else's claim, failing to reject it even at a lenient bar is the stronger statement.

Check any hour yourself →

Free on the four major pairs, with the full 23 years and the sample size on every number.