London range breakout
Worked example: London 00:00–07:00 range breakout. Freeze these rules before replay, then record every eligible signal—including the ones you skip.
- CHART
- M15
- CLOCK
- Europe/London, including historical daylight-saving changes
- DECISION
- Completed candles only
Build the same chart
Market scope
- EUR/USD and GBP/USD M15; Europe/London clock with IANA daylight-saving changes; both directions.
- Build the range from candles opening at 00:00 through 06:45 London time; trade only from 07:00 through 10:00.
- Store UTC timestamps alongside London labels so historical DST conversion remains auditable.
Settings
- Plot the completed 00:00–07:00 London high, low and midpoint; freeze them at 07:00.
- Add Wilder ATR(14) on M15; convert spread to pips at each decision.
- Use an official economic calendar list prepared before the session; flag high-impact GBP, EUR and USD events.
Check eligibility first
- Range width must be between 0.75 and 2.00 × ATR(14) measured at 07:00.
- Displayed spread at signal and entry must be no more than 1.5 pips on EUR/USD or 2.0 pips on GBP/USD.
- No flagged event may occur from 30 minutes before entry through 60 minutes after it, and the date must not be a UK bank holiday.
Wait for the close
After freezing the 00:00–07:00 range, wait for the first completed candle from 07:00 to 10:00 that closes at least 0.10 × ATR(14) above the range high. Enter at the next M15 open only if the gap and all filters still pass.
After freezing the 00:00–07:00 range, wait for the first completed candle from 07:00 to 10:00 that closes at least 0.10 × ATR(14) below the range low. Enter at the next M15 open only if the gap and all filters still pass.
Stop and invalidation
Place the stop at the frozen range midpoint. Risk 0.25% of equity, rounded down to 0.01 lot, because session gaps and spread expansion are material.
Never widen the stop to keep a losing idea alive. Recalculate size from the actual entry-to-stop distance before entry.
No-trade filters
- Range width is outside 0.75–2.00 × ATR(14) at 07:00 London.
- Spread is above 1.5 pips on EUR/USD or 2.0 pips on GBP/USD.
- A flagged GBP, EUR or USD event falls from 30 minutes before entry through 60 minutes after it, or it is a UK bank holiday.
- The signal arrives outside 07:00–10:00, the day already produced an entry, or the next-open gap is greater than 0.25 × ATR beyond the signal close.
Choose before entry
This card's fixed method
Place a fixed 1.5R target. Close any remainder at the 10:00 London bar close.
Test separately—never mix mid-trade
- Separate variant only: stop-entry at the range edge.
- Separate variant only: opposite-edge stop rather than midpoint stop.
- Separate variant only: a 23:00–07:00 UTC range; do not combine it with the Europe/London sample.
Match the setup
Open a M15 chart and add Frozen session range, ATR(14) from Insert or Navigator with the exact inputs above. Draw required price levels before the reaction and check external filters separately. Convert broker timestamps to Europe/London before drawing 00:00–07:00; do not treat server time as London time.
Open a M15 chart and add Frozen session range, ATR(14) from Insert > Indicators or Navigator. Match applied price and Wilder periods, then make decisions from completed candles only. Convert broker timestamps to Europe/London before drawing 00:00–07:00; do not treat server time as London time.
Set the chart to M15, add Frozen session range, ATR(14), and match the feed and inputs. Display Europe/London time and check historical DST before freezing the session range. In Bar Replay, write the decision before advancing.
Before placing a demo trade
Frozen replay costs
Replay from Bid/Ask where available; otherwise use a 1.2-pip EUR/USD or 1.8-pip GBP/USD spread plus 0.2-pip adverse slippage per fill and zero commission.
Practice template only—not a live trade signal or proof the method works. Test plenty of charts, including signals you skip.
Guided practice: https://wickatlas.com/tools/forex-trading-simulator?strategy=london-range-breakout&coach=1#guided-replay