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Breakout trade in the London Session

 
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alexbrooke

Breakout trade in the London Session

Trade only the major currency pairs such as the EUR/USD, the GBP/ USD, and the USD/JPY during the first three hours of the London session. 

This strategy is based on the surge in volatility at the opening of the London session immediately following the much less volatile Asian trading session.

Use of the hourly chart has proven to be the best timeframe for this strategy since the opportunities exist for about 3 hours.

Be online at 0700 GMT at which point you should take a look at the last 4 candlesticks (considering we use H1 time-frame) and note the highest high and the lowest low of those 4 candlesticks (4 hour period). This is the Asian trading range that we are looking for price to break out of.

When to BUY:

 If the next candlestick goes above the highest high of the previous 4 candles, and if the price is above the 50 SMA, then that’s a signal to go long on the currency pair. 

  • Place your stop loss below the lowest low of the last 4 candles.

  • The take profit target is the height of the range projected above the breakout.

When to SELL:

 If the price breaks below the lowest low of the range and price is below the 50 SMA then that’s a signal to take a short trade. 

  • Place your stop loss above the highest high of the last 4 candles.

  • The take profit target is the height of the range projected below the breakout.
Fri, 01/11/2019 - 6:54pm