If you are able to draw a few horizontal lines on your chart and can be awake during the trading hours for the London session, let’s get started on how you can profit from the superior trading opportunity breakouts during the London trading session can be. What Time Is The London Trading Session You can see millionaire forex trader secrets greg secker this chart that the London trading session, as noted by the green arrow, has much higher trading volume than the Asian trading session to the left.
We are looking to take advantage of the range bound market that occurs during the Asian session. The London open should see a spike in trading volume and we want to get involved in a trade during this time. Now, we don’t know which way the range bound Asian market will breakout during the London session. What we do know is that when the Forex market opens in London, we will get an increase in trading volume.
The London Breakout Strategy is a momentum trading strategy that uses the coiled up energy from the Asian session. What Do You Need To Trade The Breakout At The London Open There are no special trading indicators needed to trade the breakout at the London open but we do have a time frame we like to use. You can use this MT4 indicator that highlights the different trading sessions. While there may be a few variations of the London Breakout Strategy, this is the simplest version that requires very little of your time. How To Trade The London Breakout Strategy: Rules Since we are usually coming into the London session in a range, we already have an entry point due to that range. At 1 times your risk, move your stop to break-even.
Close the trade prior to the U. Too wide is subjective but think in terms of ATR. You can see the difference in ranges on this chart. Take note of the long shadows. What Are Some Of The Advantages To This Breakout Strategy? Monday and Friday can cause some odd price action during both the Asian and London session. I know some of you will probably want to use some indicator for this trading method.