About the London Breakout Indicator
The London Breakout Indicator for Metatrader 4 is a precision-engineered tool designed to capitalize on the massive liquidity injection that occurs during the European market open.
This indicator eliminates the guesswork of session trading by automatically plotting the exact Entry Buy and Entry Sell prices.
By focusing on the volatility shift as London banks come online, traders can capture directional moves that often dictate the trend for the remainder of the day.
Beyond just identifying the entry, it provides five distinct take-profit levels for both bullish and bearish scenarios.
It is an essential asset for day traders who want to transition from the quiet Asian session into the high-momentum London environment with a clear, objective plan.
Free Download
Download the “london-breakout.ex4” MT4 indicator
Key Features
- The indicator automatically identifies and highlights the London pre-breakout zone.
- It plots clear Entry Buy and Entry Sell price levels directly on the chart.
- The system provides five tiered take-profit targets for professional trade scaling.
- It visualizes the session range with a distinct light brown shaded area.
- The tool is optimized for high-volatility pairs like GBP/USD, EUR/USD, and GBP/JPY.
- All session times and calculation parameters are fully adjustable in the inputs tab.
Indicator Chart
The chart displays the London Breakout Indicator featuring a light brown box that marks the session range.
You can see the horizontal lines extending from this box which represent the buy and sell entry triggers.
Above and below these entries, multiple target levels are clearly marked, providing a visual roadmap for the trade.
Guide to Trade with the London Breakout Indicator
Buy Rules
- Monitor the chart as the London session open approaches and the box forms.
- Wait for the price to hit or exceed the Entry Buy price level marked by the indicator.
- Open a buy trade position immediately upon the price touching the entry trigger.
Sell Rules
- Monitor the chart as the London session open approaches and the box forms.
- Wait for the price to hit or fall below the Entry Sell price level marked by the indicator.
- Initiate a sell trade position as soon as the price reaches the bearish trigger.
Stop Loss
- Place the stop loss 2-3 pips below the immediate support level for buy trades.
- Position the stop loss 2-3 pips above the immediate resistance level for sell trades.
Take Profit
- Close half of your open position when the price reaches the indicator’s Buy or Sell Target 1.
- Liquidate the remaining portion of the trade as the price hits the indicator’s Target 5 level.
- Secure gains at each of the five automated take profit levels provided by the indicator.
London Breakout Forex Strategy with SuperTrend Indicator for MT4
This MT4 strategy combines the precision of the London Breakout Metatrader 4 Indicator with the trend-following signals from the SuperTrend MTF Forex Signal Indicator.
The London Breakout indicator identifies key buy and sell entry zones specifically for the London session, along with five potential take profit levels.
The SuperTrend line confirms the prevailing trend, helping traders avoid false breakouts.
This strategy works best on M15 and H1 charts.
It is ideal for day traders looking to catch high-probability breakout trades during the London session.
The combination of entry zones and trend confirmation increases the likelihood of capturing strong price movements.
Buy Entry Rules
- Wait for price to reach the buy entry level of the London Breakout indicator.
- Confirm that the SuperTrend line is green, indicating a bullish trend.
- Enter a buy trade at the buy entry price.
- Set stop loss slightly below the bottom of the London Breakout trading zone.
- Take profit can be taken sequentially at the buy target levels 1 to 5 provided by the indicator or when the SuperTrend line flips to red.
Sell Entry Rules
- Wait for price to reach the sell entry level of the London Breakout indicator.
- Confirm that the SuperTrend line is red, indicating a bearish trend.
- Enter a sell trade at the sell entry price.
- Set stop loss slightly above the top of the London Breakout trading zone.
- Take profit can be taken sequentially at the sell target levels 1 to 5 or when the SuperTrend line flips to green.
Advantages
- Clear and structured entry levels reduce guesswork during volatile London session.
- SuperTrend confirmation filters false breakouts and aligns trades with the main trend.
- Multiple take profit levels allow flexible profit management.
- Works on multiple currency pairs such as EURUSD, GBPUSD, and USDJPY.
- Suitable for both scalpers and intraday traders.
Drawbacks
- Breakouts may fail during low volatility days or pre-news periods.
- Requires monitoring during the London session for timely entries.
- Stop losses may be hit if the market reverses quickly after the breakout.
- Multiple take profit levels can require active trade management.
Case Study 1
On EURUSD M15, the London Breakout indicator set a buy entry at 1.1672.
The SuperTrend line was green, confirming a bullish trend.
A buy trade was opened at 1.1672.
Price quickly moved upward, hitting target 1 at 1.1685 (+13 pips), target 2 at 1.1695 (+23 pips), and target 3 at 1.1705 (+33 pips) before pulling back.
The trade captured a total of 33 pips while following the main London session momentum.
Case Study 2
On GBPUSD H1, the London Breakout indicator set a sell entry at 1.2760.
The SuperTrend line was red, confirming a bearish trend.
A sell trade was executed at 1.2760.
Price moved downward, hitting target 1 at 1.2748 (+12 pips), target 2 at 1.2735 (+25 pips), and target 3 at 1.2725 (+35 pips).
The SuperTrend line remained red, allowing the trade to ride the trend for a total of 35 pips before pausing for consolidation.
Strategy Tips
- Only take trades when the SuperTrend line confirms the breakout direction.
- Monitor price near multiple take profit levels to decide whether to close partial positions or hold the full trade.
- Use the bottom/top of the London Breakout zone as a guide for stop loss placement to protect capital against reversals.
- Trades taken early in the London session often perform best due to increased momentum and liquidity.
Download Now
Download the “london-breakout.ex4” Metatrader 4 indicator
FAQ
Which pairs are best for the London Breakout Indicator?
The most reliable results typically come from GBP and EUR crosses, such as GBP/USD, EUR/USD, and GBP/JPY.
These pairs experience the highest volume increase during the London open, leading to cleaner breakouts.
Should I trade all five target levels?
Professional traders often take half of the profit at Target 1 to secure the trade.
You can then move your stop loss to break-even and trail it toward Target 5 to capture the maximum possible move.
Summary
The London Breakout Indicator is a vital tool for anyone looking to master session-based trading.
Its primary benefit is the objective delivery of entry and exit points during the most liquid time of the trading day.
While it is incredibly effective on its own, its performance is further enhanced when used with a trailing stop-loss strategy.
