GBP/USD London Breakout Scalp
Learning to scalp the London market open in any time frame takes practice. You need a solid strategy that you have back-tested thoroughly before testing on a live market. Using this 15-minute scalping strategy requires the same testing and patience.
A resistance zone has formed around the 1.88 price point. This resistance zone was formed during the Asian trading session. So, Ideally, we like to see if we can catch a breakout from this range when the London market opens. If the opening candle itself breaks above the previous resistance, this does not always represent a true breakout. It could sometimes be a fakeout. As you can see, the price broke out of this trading zone as soon as the London session opened up. However, in that 15-minute candle, we saw the price retrace back into the zone and turn into a large bearish candle with a massive wick on top. This would indicate a fakeout on the lower time frames. The bulls were all stopped. This is why we must be careful and wait for confirmation of a true breakout. This is why I use a simple moving average to help confirm a breakout candle.
The moving average I use helps me with my entries.
I like to see the breakout candle begin on top of the moving average and then I like to see the breakout candle close very close to its high or low. Once I see that this helps confirm my entry. My target for scalping a London market breakout is always around a one to two risk to reward.
On this particular date in November, we can see that the pound has been regaining strength against the US Dollar. On the higher time frames, we are moving upwards. In fact, on the daily time frame, we can see we have finally broken the giant descending trend line that has kept the price below it for the greater part of this year. So, we should always make sure we are trading on the right side of the market. Use a higher time frame bias to confirm your market bias. If the market is bullish and trending upwards, wait for opportunities to go long. Conversely, if the market is bearish, wait for opportunities to go short.
Practicing a strategy like this provides you with one of the greatest skills a trader can have in their bag of tools – patience.
Do not just jump into the market when you see a breakout. Make sure all your criteria are met. If your criteria aren’t met for an entry, then watch and wait. Setup alerts, make sure you only enter when your entry signal is beaming. You need to be able to see your entry so clearly. This means you won't get entries all day every day. With this particular strategy, I may only have a few entries per week. This is perfectly fine and in fact, I like it. It helps me become a better trader.
The Vortex Trader
A resistance zone has formed around the 1.88 price point. This resistance zone was formed during the Asian trading session. So, Ideally, we like to see if we can catch a breakout from this range when the London market opens. If the opening candle itself breaks above the previous resistance, this does not always represent a true breakout. It could sometimes be a fakeout. As you can see, the price broke out of this trading zone as soon as the London session opened up. However, in that 15-minute candle, we saw the price retrace back into the zone and turn into a large bearish candle with a massive wick on top. This would indicate a fakeout on the lower time frames. The bulls were all stopped. This is why we must be careful and wait for confirmation of a true breakout. This is why I use a simple moving average to help confirm a breakout candle.
The moving average I use helps me with my entries.
I like to see the breakout candle begin on top of the moving average and then I like to see the breakout candle close very close to its high or low. Once I see that this helps confirm my entry. My target for scalping a London market breakout is always around a one to two risk to reward.
On this particular date in November, we can see that the pound has been regaining strength against the US Dollar. On the higher time frames, we are moving upwards. In fact, on the daily time frame, we can see we have finally broken the giant descending trend line that has kept the price below it for the greater part of this year. So, we should always make sure we are trading on the right side of the market. Use a higher time frame bias to confirm your market bias. If the market is bullish and trending upwards, wait for opportunities to go long. Conversely, if the market is bearish, wait for opportunities to go short.
Practicing a strategy like this provides you with one of the greatest skills a trader can have in their bag of tools – patience.
Do not just jump into the market when you see a breakout. Make sure all your criteria are met. If your criteria aren’t met for an entry, then watch and wait. Setup alerts, make sure you only enter when your entry signal is beaming. You need to be able to see your entry so clearly. This means you won't get entries all day every day. With this particular strategy, I may only have a few entries per week. This is perfectly fine and in fact, I like it. It helps me become a better trader.
The Vortex Trader
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