London Rush - Forex breakout strategy for trading on the London session

Description

The London Rush forex system is an impulse breakout strategy based on market acceleration occurring in the first two hours of the London market. This is a fairly reliable phenomenon, based on the fact that the Tokyo forex market for the British pound is usually quite sleepy, while the London market is awake and very active. In order to see and exploit this momentum, when the London volume starts to rise, it is necessary for the price to "wake up" from its "dormant" state. If the Asian market was surprisingly active for the British pound, and therefore the price moved rapidly in any particular direction, it makes no sense to look for an impulse blow at the opening of trading in London. The momentum is already there, it is carried over from Tokyo.
What exactly is needed is a sleepy British pound, which will get a "wake-up call" around 9 am GMT+3. In order to start trading, we need a narrow, sideways range, formed during the Tokyo session. Or, more precisely, we will look for the moment and direction, in which the price at the London session will leave this range. To easily find the entry point, we need to clearly indicate the Tokyo range on the chart. To do this, we mark its maximum and minimum with two horizontal lines.

The indicator will tell you whether to go long, short or stay out at the beginning of the London trading day.

In addition, the London Rush indicator forex method will provide you with accurate entry levels, stop loss (aggressive and conservative) and take profit (aggressive and conservative).

The London Rush indicator is shown in action on the GBP/USD H1 chart below.

Basis of the strategy

There are four market sessions in forex trading, such as the London, New York or the opening or closing time of the Japanese market. Many people know that the London session is the most active in the foreign exchange market. Because it has the largest trading turnover:

The currency with high volatility has already been chosen: the pound sterling.
Now, in addition to volatility, the sterling pound has two characteristics related to trading volume that make it ideal for our system:

1. During the Tokyo session, the pound is trading at a very low volume.
2. The pound trades at a very high volume during the London session. Indeed, it is not surprising that that is where most of the daily trading in this currency is concentrated.

When trading in London opens after a quiet Asian session, the market experiences larger price movements, usually in one direction (up or down):

How to trade

This market pattern and is used in the trading system Forex London Rush. Simply set pending orders on High and Low Asian session (above / below 5 points). Once one of the orders will be open, the second order is deleted.

This is important: the denser and more horizontal the daytime Tokyo range, the better.

If the range is wide, it is better not to trade.

You can use the London Rush recommended stop-loss and take-profit levels (visible on the chart).

Stop Loss setting options

1. Aggressive stop-loss placement: placed 5 pips below the middle band of the Tokyo range. That is, you take the maximum of the Tokyo range, subtract its minimum, divide the result by two and place the stop loss 5 pips below that figure.
2. Conservative stop loss placement: For a more conservative approach, you can place your stop loss 5 pips below the opposite Tokyo strip from the breakout strip. For example: if you buy on a breakout high, place your stop loss 5 pips below the low.

Take profit

Take Profit can be set at the nearest support or resistance level or at round numbers. The profit is equal to the stop loss or more. Or set the recommended by the system.

If the indicator on the chart shows "NO TRADE", do not trade.

Conclusion

Always remember that the goal is to profit from an explosive price movement when the normally calm Tokyo market gives way to the fast and swift London market. These are exactly the kinds of market conditions Exactly the kind of market conditions that were created to use this system, and it does it wonderfully! So don't miss your chances by entering the game when conditions are less than ideal.

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London Rush