London Breakout Strategy (Intraday)

There are lots of forex trading strategy but please remember there are no trading strategy that work 100% accurately. The
basic techniques for market analysis is support and resistance with market rejection or breakout. Another things that
trader should take a note is time or trading session. Even though forex is open 24hours doesn’t mean you should trade all
the time.

Since it’s called London Breakout Strategy, this strategy should be trade during London session with market breakout
method. In addition, GBP pairs can move 30 pips to 150 pips a day, so that, the minimum risk should be taken is 30pips to
50pips with gain 60pips to 100pips.

Time trading (MT4 time zone)

No Phase MT4 time Description

1 London pre-open H0900 London time 7.00AM
2 London open H1000 London time 8.00AM. Market volume increase.
3 London break H1300 London time 11.00AM. Market quite.
4 London resume H1500 London time 1.00PM. GBP data release.
5 London-US session cross H1600 London time 2.00PM. Market spike as US open.
6 US-session H1700 London time 3.00PM. US data release.
7 Europe close H1800 London time 4.00PM. Europe close.
8 London pre-close H2000 London time 6.00PM. Usually direction change.
9 London close H2200 London time 8.00PM. London close.

Understand Support and Resistance

There is no perfect Support and Resistance. Depends how trader define support and resistance. For London breakout
strategy, we use LOW and HIGH candle pre-open (H0900) as support and resistance.

HIGH (Resistance)

LOW (Support)
Pre-open candle (H0900)

Figure 1 Support and Resistance

 Understand breakout method

Breakout

HIGH (Resistance)

Retest

LOW (Support)

Figure 2 Breakout Buy

HIGH (Resistance)

Retest

LOW (Support)
Breakout

Figure 3 Breakout Sell

Price break and close above or below Resistance and Support respectively. Open trade if price reach breakout level.
Entry plan

1. Using London open strategy.

2. Open chart timeframe H1 during London open time.

3. Identify high and low of London pre-open candle (H0900). (HIGH = Resistance; LOW = Support)
4. Open timeframe 15min and wait for candle 15min close above or below high low.
5. Entry if price retrace back at high or low of London pre-open candle (H0900).
SELL Signal example

Figure 4 London pre-open candle H1

Figure 5: SELL signal on M15

BUY Signal example

Figure 6: London pre-open candle H1

Figure 7 BUY Signal on M15

Exit plan

1. Just let price hit TP or SL. OR

2. Close at the end of London session.

Tips:

1. Don’t chase market. If you missed the entry level just place pending order.
2. If you already ride on, just let price move to TP or SL or close at end of London session.
3. Invest your money on strategy and don’t gamble.