London Breakout is one of the best trading strategies among hundreds of others that we have in the Forex Market. The London Breakout Strategy calls for traders to buy or Sell a currency pair on its breakout from the previous Tokyo trading range. The strategy only emits one signal each day at 08:00 London time since that’s when the London trading session begins.
The indicator will indicate whether to place a sell order, buy order or to not trade. Furthermore, the London Breakout indicator will provide you with the precise entry, stop loss (aggressive and conservative), and take profit levels (aggressive and conservative). All this is displayed on the chart that you deploy the indicator to.
The London Breakout Indicator system will give you trading signals that you can take as they are or add your own additional chart analysis to further filter the signals that are recommended. Although traders of all experience levels can use this system, it may be beneficial to practice trading on an MT4 demo account until you are consistent and confident enough to start.
It is recommended to use London Breakout indicator on GBP currency pairs namely GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPCHF and GBPNZD for best results. In my own experience, it’s easy to use on M15 but works the same on any time frame below H4.
- Open your charts just as the London market is about to open. Make sure all six GBP crosses (GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPCHF, and GBPNZD) are set to the H1 time frame.
- Change the Tokyo start/end time and London start time according to your broker’s time.
- At 08:00 London time, the market opens, the indicator will move. It will call one of three things: a “Long Trade” opportunity, a “Short Trade” opportunity, or “No Trade.” If there is a trading opportunity, it will also display the entry point, stop loss, take profit and lot size levels.
- Before placing a trade, check the market trend indicator to see if the chart is up, down, or trendless.
Trade only if the breakout occurs before the countdown expires and the breakout occurs in the direction of the indicator. If these two conditions are not met, do not place a trade.