The Asian session (roughly 22:00-07:00 UTC) is typically low-volatility and range-bound, since Tokyo and Sydney carry a fraction of London/New York's volume. When London opens at 07:00-08:00 UTC, a wave of institutional orders often breaks that overnight range decisively — the London Open strategy is built to catch that breakout.
The Setup
- 1.Mark the high and low of the Asian session (22:00-07:00 UTC) on your chart — this is the 'Asian range'.
- 2.Wait for the London session to open (07:00-08:00 UTC).
- 3.Watch for a decisive break of either the Asian high or low, ideally accompanied by increased volume/momentum candles.
- 4.Be alert to a 'sweep and reverse': London often takes out one side of the Asian range briefly, then reverses hard the other way — this is a common institutional liquidity grab.
Rule Set
| Element | Rule |
|---|---|
| Setup | Defined Asian range (22:00-07:00 UTC), London session about to open |
| Entry trigger | Breakout candle closes beyond Asian high/low with momentum during 07:00-09:00 UTC |
| Stop-loss | Middle of the Asian range, or just beyond the opposite boundary |
| Target | 1x-2x the Asian range height projected from the breakout, or next H4/Daily level |
| Invalidation | Price re-enters the Asian range and closes on the opposite side (sweep-and-reverse) |
Worked Example
During the Asian session, EUR/USD trades between 1.0820 (low) and 1.0860 (high), a 40-pip range. At 07:15 UTC, price breaks above 1.0860 on a strong M15 candle with increasing volume. You buy at 1.0864, stop at 1.0840 (middle of the Asian range), and target 1.0900 (a full 40-pip range projected from the breakout) — about 1.6R.
One of the most common London Open patterns is a quick spike through the Asian high (or low) that immediately reverses — a stop hunt before the real move. Many traders wait 15-30 minutes after the open to see if the initial break holds before committing.
Pros and Cons
| Pros | Cons |
|---|---|
| Predictable timing — always the same session window daily | High risk of fakeouts/liquidity sweeps around the open |
| Captures the day's largest early move | Requires being awake/available during early London hours |
| Works especially well on EUR, GBP, CHF pairs | Range can be too narrow or too wide some days, distorting risk-reward |
Common Mistakes
- ▸Entering the very first tick of the breakout without waiting for a candle close.
- ▸Ignoring the sweep-and-reverse pattern and holding a losing breakout trade.
- ▸Trading a very narrow Asian range (under 15-20 pips) where noise dominates signal.