Capitalize on breakout of narrow trading range just before the London session.
Trading volume and volatility for the Great British Pound (GBP) and Euro (EUR) pairs is generally low during the Asian and Australasian sessions, and increases during the London and New York trading sessions. This strategy aims to capitalize on a breakout of the narrow trading range just before the London session opens, and capture the initial directional movement of the market on Great British Pound foreign exchange (Forex) pairs.
There are several ways to do this, but as with many trading strategies, it often requires subjective assessment and decision making. This specific strategy seeks to remove the subjective decision making process in trading, which is often the cause of inconsistent trading results. Hence the trading strategy rules are simple and explicit and easy to execute for novice and experienced traders.
Also called London Daybreak Strategy, Euro Open Strategy, European Open Strategy, Volatility Breakout Strategy, Daytrading.