London Session Trading Strategy Breakouts & Reversals That Actually Work (Live on cTrader)

UK, one of the biggest contributors to financial markets. Tons of money flows in the market during the London session. And if you take this money, this flow, and you go with the break at the beginning of the session or specific price reaction at the mid-session, you have the edge in trading. What's up guys, Vladimir here from Home Trader Club. Let's talk about How to trade during the London session. Why specifically the London session? When does the London session happen? What do we trade in the London session? Let's break it down. So when does the London session happen? Uh, so simple, 8 AM to 5 PM London time. I am based on New York time, Toronto time. Which is, as you can see on the platform here, is represented by UTC -4, okay, and gives me local time. The great part here, you can in the platform here with this arrow, you can set up the time zone you want the platform to represent, whatever is convenient for you. But for the case of the example, that's why on my time zone it is 3 to 12, 3 AM to 12 PM. That's what the, the hours you would see On my example, that's in terms of when does the London session happen. Now let's talk about the why London session. So London, UK, one of the biggest contributors to financial markets. Tons of money flows in the market during the London session, and if you take this money, this flow, and you go with the break at the beginning of the session or specific or price reaction at the mid-session, you have the edge in trading. So what instruments we would want to trade at? Pounds makes sense, right? The UK, the pounds. Uh, you can also see price reaction on the euros. Uh, sometimes you can see also price reactions on commodities in times. London session brings tons of money, and that affects the market in general. I personally love the pounds during the London session, just personal preferences. So, um, this video would be presented on cTrader platform. Why cTrader? The reasons are endless why, uh, this platform is considered one of the very best in the industry, maybe even the best. And you know I am a MetaTrader guy for over a decade, uh, but I cannot deny the advantages this platform has. And here you can find all the advantages that, from my point of view, make this platform better than others. I also started to create a playlist dedicated to cTrader platform where you will be able to find videos on how to use the platform with all its amazing features and different trading strategies, concepts, and methods that I explain on the platform. Watch this playlist right here on the right top corner. So there are 2 main ways I will be presenting here which I use in London session. Not only London session, but in London session specifically, it gives a great price reaction. That's the breakout of key levels, uh, and that's reversals of mid-sessions. Okay, now please note, that's not any hype promise that this is the secret that you have to know, nothing like that. It's a proven method, um, concept, very logical, that works with the beginning of the session. Tons of money flows in. If the price reacts accordingly in the mid-session, a lot of this money— usually not always— start to close position. And when big money closes positions, price retraces to the opposite direction. It's that simple. It's that simple. And the reason I say that is because you can find online tons of empty promises. This is the best, this is a secret, this is— no secrets, pure logic. And if you take that, add that to the concept we, uh, we'll be talking about here. Use common sense, use good money management you will have the edge and you will enjoy great profits. So 2 concepts: one with the breakout, 2 after mid-session, or around mid-session I should say. So as I said, uh, let's go on the platform here. Uh, you would see pound-dollar on my chart because I love the pound during the London session. It's that simple. Uh, so first method, I love to see trending structure, which means sequence of highs and lows before the session, retrace in ABCD or a range, and breakout at the opening. Okay, same one candle after are fine, uh, or same candle ideal. That's the, uh, concept, right? Or 3 lower highs if it's for a sell, uh, ABCD or a range and breakout. Same story. That's the first method. Take a look what happens here. Higher highs, higher lows before the session. I'm talking about this range presented by these purple lines. As you can see, 3 AM to 12 AM, uh, the Toronto time. Okay, uh, so what we have there, trending structure, higher highs, higher lows, corrective movement as a range. And look what happens right here as the candle starts As the session opens, boom! We got break and close above the key level. Now why this is a key level? Because if we go back, look what happens here: resistance, resistance, resistance, resistance, resistance, resistance, and then boom! The breakout happens. So this is an absolutely great sign, right? We got trending structure. We got the range correction. We got the break above that at the opening. Voilà. Now, um, the— this should be the place where you consider to buy. You would want to protect the pre— the previous lows. This would be for aggressive, that would be for more conservative. And the question is, where do you aim as a target? If there is a key resistance on the horizon, then of course aim to that resistance. If not, use Fibonacci expansion. So you go to this toolbar, Fibonacci expansion, starting point, ending point of the trend, and then ending point of the correction. Starting point, ending point of the trend, and any point of the correction. And aim to 61.8, or ideally to 100, but many times it would not have the momentum to reach the 100 expansion. 61.8 is absolutely fantastic. Target level. Okay, so that would be the breakout. Now I want to show another day, another example to the opposite direction, but same logic for the for the sell. Okay, with the breakout. So take a look. This was a day before. So it was first of July. This is thirty of June. Now take a look what happens here right before the breakout. We are in bearish. Momentum, lower highs, lower lows, bearish trend line, right? Some sort of a channel here and some correction that bounces right before the London session begins. Once again, you can see this range. Okay, this is the day I marked 3 AM to 12 PM based on Toronto time. Now look what happens here. This is the opening double breakout at the same time. We draw it a little bit better for you. Trendline breakout and step breakout, which means high, low, high, low breakout. Okay, let's erase these lines here. Okay, so high, low, high, boom, breakout. You see this candle at the opening? Let me just make it bigger. Here we are. At the opening, we got both breakouts— the trendline breakout and the step breakout— at the open, joining the trending structure we have right before the trend. Okay, bounce of the trendline in this Trending structure with the momentum double breakout. Okay, in the same time, right? The same time, right? Break of the low, break of the trend. So once again, you would want to protect the highs, and you would want to aim to the key supportive zone you have. And if you don't, then plot Fibonacci. Um, extension. How? This is our trending structure. Beginning of the trend, end of the trend, end of the correction. Aim to the 61.8 zone. Okay, so will that always work every single day with the breakout? Answer, of course not. Of course not. It's market. It's not Nothing guaranteed. If nothing happens, don't do nothing. It's that simple. Many traders try to force. Why? The market doesn't care what you want, when you want. The market will do what the market has to do, as you already know that. So this is example, okay? 27th of June. This is the high before the session. This is the low before the session. Again, I marked it here as a purple line. Okay, nothing happens. No breakout to the upside, nothing. So if it goes flat and no momentum at the opening, get out if you are involved, and ideally don't get involved. Okay, so I wanted to show this example of when not to do anything. And the second thing which I want to, uh, discuss here is What do we do at the mid-session? So let's plot the vertical line at the mid-session. You want to change the colors just for the presentation. Okay, as I said at the beginning, during the beginning of the session, lots of money flows, and by reaching certain points, the market will very likely start to reverse. This is the mid-session of that day. This is the mid-session of that day. As you can see, mid-session, sometimes a bit, uh, low, um, uh, before, sometimes a bit after, the market will respond again only if at the beginning of the session you've got a clean momentum in one certain direction. Uh, so, uh, let's go back to the first day example. Okay, when do you want to attack? So I love to attack around the mid-session if higher time frame has key resistance or supply, because here I'm looking to sell, right? Why sell? Because it was making the bullish momentum before. So mid-session, looking for the sell. So I want to find key resistance or key supply level on the, uh, higher time frame. This is 15 minutes. 1-hour chart, it means, or bearish divergence. A bearish divergence would give me a hint for the sell. So let's go to the 1-hour chart and look what happens at that case. I don't have any supply level or resistances here, but I do have this amazing condition: higher highs on the chart, lower highs on the MACD. That's how bearish divergence looks like. Why bearish? Because the price makes higher highs, indicator indicates lower highs, which means something happens on the market. Buyers are losing their grip. Very possible retrace to the downside. Okay, so, uh, if you don't have this MACD on your chart— for me it's default— go to this toolbar, add indicator, find the MACD, and you will enjoy this indicator. Okay, so mid-session, as we spot the opportunity Here we are. We confirmed that the higher time frame has signs against me. This is the great zone to look for a sell until end of session. Okay, I don't know if this move will happen. Of course, looking backwards is easy, but I don't know if it will happen. So by the end of the session, either if it goes flat, against, or in my favor, I am out. The key thing To trade at the mid-session reversals is that the higher time frame is with you. Remember that, it's important. Look at the second example. We reach the target on our sell, we go to the higher time frame. Second example is right here, right? Mid-session. Look what happens here. Okay, this is the higher time frame, 1-hour chart now. Okay, look what we have here. This was the bearish trend we were talking about before, and look at that case— lower lows on the chart but higher lows on the histogram. Bullish divergence. Negative, positive histogram, higher negative histogram, which means higher time frame has a bullish divergence. So the mid-session we were talking about is very likely to react to the upside. Let's take a look how it looks like on the chart. Here we are, and by the end of the session, which is here, I am out. Small profit, small loss, big profit— whatever happens there, I am out. The key element for this reversal trading is that the higher time frame has a support In the direction you are looking to trade. That's it for this video. If you find value in this one, please don't forget to hit the like button. 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