The 3 Tier London Breakout Indicator generates alerts based on the London breakout technique. The London Breakout strategy seeks to benefit from the trading range before the opening session in London. Because London operates on a different time zone than New York, the market opens several hours before the New York session. This gives traders an excellent chance to initiate fresh positions. To offer an overall view, the indicator generates buy/sell objectives.
What is the 3 Tier London Breakout Indicator?
The 3 Tier London Breakout Indicator depicts BO and the number of pips on the chart. It indicates that the Breakout will occur after these many pips. The 3 Tier London Breakout Indicator depicts boxes on the chart as well. There are three sorts of boxes: max/min, limit, and stick. These boxes are within the price range. Because the indicator adheres to the London Breakout approach, it displays BUY and SELL entry objectives after the emergence of the BO.
The indicator’s advantage is that it plots everything on the chart. It refers to Buy/Sell entry objectives as well as Entry Buy/Sell. It is a BUY indication when the indicator shows an Entry Buy following the Breakout. Long positions’ profit targets are the Buy targets.
When the indicator generates Entry Sell, it is a Sell signal. The Sell targets are the take profit targets or short trades.
3 Tier London Breakout Strategy
London Breakout Indicator & Strategy is a full London breakout forex system known as the London Forex Rush indicator method among currency traders. The indication is based on the preceding Tokyo trading range as well as a trader’s secret ingredient. The indicator will advise whether to go long, short, or stay away at the start of the London trading session.
Furthermore, the London Forex Rush indicator method will provide you with the precise entry, stop loss (aggressive and cautious), and take profit levels (aggressive and conservative). The Asian breakout indicator is another similar forex trading indicator that is based around the Asian trading session.
Buy Signal
The following could be your checklist for a buy trade:
- When the indicator draws BUY targets on the chart.
- When the market trend indicator is up trending.
Once these two events occur, you could do the following:
- Open a buy position if the breakout occurs in the direction of the market trend indicator.
- Set your stop loss just below the nearest swing low.
- Set your take profit at the nearest resistance zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Sell Signal
The following could be your checklist for a sell trade:
- When the indicator draws SELL targets on the chart.
- When the market trend indicator is down trending.
Once these two events occur, you could do the following:
- Open a sell position if the breakout occurs in the direction of the market trend indicator.
- Set your stop loss just above the nearest swing high.
- Set your take profit at the nearest support zone.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
3 Tier London Breakout Pros & Cons
Pros
- To identify BUY and SELL signals, the indicator creates price zones. It displays Buy/Sell targets as well as Entry Buy/Sell to provide precise entry and exit locations inside the zone.
- This indicator is suitable to use by traders of all levels of experience.
Cons
- For optimum results, it is recommended to utilize this indicator on just six currency pairs, including GBPUSD, GBPJPY, GBPCAD, GBPAUD, GBPCHF, and GBPNZD.
- Using this indicator can be confusing initially.
- There can be lots of false breakouts so it needs excellent forex money management.
Conclusion
Based on a London Breakout technique, the 3 Tier London Breakout Indicator creates price zones. The London Breakout Indicator method may provide trading signals that you can use as is or combine with extra chart research to further filter the signals, which is advised. While this technique is suitable for traders of all levels of expertise, it may be useful to practice trading on a demo account until you are consistent and confident enough to trade live. You can get a free demo trading account from most forex brokers. I would always test a new forex strategy using virtual funds to begin with until I get used to how it works and start seeing some long term success.
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