6# London Breakout Trading System

Submit by Joy22 12/04/2011

 

1. Open a 15 min Chart for a GBP/USD

2. Draw a vertical line at 04:00gmt time on your GBP/USD Chart.

3. Draw a vertical line at 06:00gmt time on your GBP/USD Chart.

Please note the charts shown here are on FXDD which is GMT+2. So the lines appear on the chart at 06:00 and 08:00

4. Draw a Horizontal line at the high of candles/bars in between the vertical line.

5. Draw a Horizontal line at the Low of candles/bars in between the vertical line.

6. Add a 89 ema (exponential moving average) to the chart. 

 

 

London  Breakout
London Breakout
London Breakout.rar
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London Breakout
London Breakout

At 06:00 GMT Look at your chart. There are

three possible outcomes

No Trade

If the 89 ema crosses the box DO NOT TRADE. Simply wait for the

next day. See example Below

 

 

Sell Trade

If the 89 ema (the blue line) is above the box place a pending sell order (sellstop) 5 pips below the bottom line of the box. Set your stop loss at 15 pips and your take profit at 75 pips. When you are 20 pips in profit move your stop to break even. See example below


London Breakout
London Breakout

 In this example the Lower red line of the box is at 1.6081.

 We placed our pending sell order 5 pips below it at 1.6076.

 Our stop loss was placed 15 pips above our pending sell order

at 1.6091.

 Our take profit was placed 75 pips below our pending sell order

at 1.6001.

 When the trade moved 20 pips in our favor we moved the stop

loss to our entry at 1.6076.

 

 

Buy Trade

If the 89 ema (the blue line) is Belolow the box place a pending buy order (buystop) 5 pips above the top of the box. Set your stop loss at 15 pips and your take profit at 75 pips. When you are 20 pips in profit move you stop to break even. See example below.



 


 In this example the upper red line is at 1.6086.

 We placed our pending buy order 5 pips above it at 1.6091.

 Our stop loss was placed 15 pips below our pending buy order

at 1.6071.

 Our take profit was placed 75 pips above our pending buy order

at 1.6166.

 When the trade moved 20 pips in our favor we moved the stop

loss to our entry at 1.6091.

 

 

 

Share your opinion, can help everyone to understand the forex strategy.

Comments: 2
  • #2

    San (Saturday, 15 November 2014 03:34)

    Should we enter the trade at the breakout of London trading time i.e 8 AM GMT or should we just enter as soon as conditions are met?

  • #1

    Victor (Monday, 01 September 2014 07:14)

    In new york time what would

London Breakout