London Open Breakout Strategy
What Is the London Open Breakout Strategy?
The London Open Breakout Strategy is all about capitalizing on the explosive volatility that often occurs right after the London market opens. This setup helps you catch sharp breakouts that emerge when liquidity floods in, usually after a quiet Asian session.
Instead of guessing market direction or chasing late entries, this strategy gives you a clear structure to plan breakout trades, based on time, session behavior, and price compression.
Why the London Open Breakout Strategy Works
The London session is the most liquid forex session — and it often starts with a bang. After hours of low activity in the Asian session, the London open introduces a huge wave of volume, news releases, and institutional orders.
This volume spike tends to cause sharp breakouts from tight ranges formed during the Asian session. By identifying that range in advance and waiting for price to break and hold above or below it, you can ride the first real move of the day — with momentum on your side.
Tools and Conditions to Use
You only need a few essentials for this strategy:
- London session marked (typically 8:00 AM London time)
- Asian session range drawn out
- A clear breakout candle with volume or momentum
- Use 15-minute or 1-hour charts for better visibility
- Optional: session indicators or vertical lines to mark open times
Preparation is everything — this is a time-sensitive setup.
Step-by-Step Guide to the London Open Breakout Strategy
Step 1: Define the Asian Session Range
Start by marking the structure.
- Use the high and low formed during the Asian session
- Typically, this range forms between midnight and 7:00 AM London time
- Draw a box to mark the consolidation zone
This range becomes your breakout zone.
Step 2: Wait for the London Open
Now get ready for action.
- The London open occurs at 8:00 AM London time
- Avoid trading before the open — false moves are common
- Watch how price reacts as the session kicks off
Volume and volatility should noticeably increase at this time.
Step 3: Watch for a Breakout Candle
Now monitor for the move.
- A strong candle should break above or below the Asian range
- It should close outside the box — not just wick through
- Momentum should increase as the breakout unfolds
This is your first signal — but not the entry yet.
Step 4: Wait for a Retest or Confirmation
Patience pays here.
- Let price retest the breakout level or hold above/below it
- A small pullback with a rejection candle is ideal
- You can also use lower timeframe confirmation for cleaner entries
Avoid chasing — confirm the breakout is real.
Step 5: Enter the Trade with Precision
Once you’ve confirmed the breakout, it’s go time.
- Enter on the candle close or after the retest confirmation
- Make sure volume or volatility continues in your trade direction
- Stay away from choppy markets or news spikes
This is about trading with the flow — not against it.
Step 6: Place a Logical Stop Loss
Now manage your risk.
- Place your stop just inside the Asian range on the opposite side
- Don’t use tight stops within the breakout wick
- Let the trade breathe — but don’t give it too much room
Structure defines your risk, not emotion.
Step 7: Target the Next Session Range or Swing
Plan your exit like a pro.
- Use recent highs or lows as targets
- You can also use a fixed 1:2 or 1:3 risk-to-reward ratio
- If the move runs cleanly, consider trailing your stop
- Watch how price behaves around key zones and adjust accordingly
Momentum often fades quickly — take profits when available.
Risk Management Tips
- Only trade breakouts with momentum — not wicks or fakeouts
- Avoid trading during major news releases unless you’re experienced
- Use fixed risk per trade — no oversized positions during sessions
- If the breakout fails, step aside — there’s always another session
- Don’t rush entries — wait for confirmation or structure retests
Structure and timing matter more than speed.
Common Mistakes to Avoid
- Trading before the session opens
- Entering on the first breakout wick with no confirmation
- Ignoring the structure of the Asian range
- Using stops that are too tight and getting wicked out
- Forcing trades every day — some sessions are slow
Avoid these and your results will immediately improve.
Quick Reference Table
What Comes Next?
The London Open Breakout Strategy gives you a reliable way to catch early momentum and trade with structure and timing. By waiting for the range to form, then watching the open closely, you position yourself ahead of the crowd — not behind it.
Next, we’ll go into the New York Killzone Setup, where we time entries around liquidity sweeps and reversals before the New York market fully opens.