Time-Based Range Break
Session Breakout Setup
Trade the breakout from one session's range at the next session's open.
How It Works
The session breakout strategy uses the natural rhythm of forex sessions. The Asian session tends to be range-bound, and when London opens, increased volume often breaks that range with momentum.
The setup is simple: mark the high and low of the Asian session, then trade the breakout when London (or New York) opens. The direction of the breakout often sets the tone for the rest of the day.
This is a time-based setup with a statistical edge — London open is the most volatile period of the day. The Asian range acts as a natural stop loss zone.
Ideal Conditions
- Asian session formed a clear, tight range (20-50 pips)
- No major news events during Asia that already caused a move
- London opening within 5-15 minutes
- Daily trend aligns with the breakout direction
- Asian range does not overlap major daily S/R levels
Entry Rules
- 1Mark the Asian session high and low (00:00-06:00 GMT)
- 2Place a buy stop above the high and sell stop below the low
- 3Or wait for a candle close beyond the range and enter market
- 4Stop loss on the opposite side of the Asian range
Invalidation — When to Stay Out
- Asian range is too wide (> 60 pips) — risk too large
- Multiple false breaks during Asian session (indecision)
- Major news event scheduled during London open
- Price is in the middle of the Asian range at London open
Risk Management Tips
- Asian range width = your stop size (plan position size accordingly)
- Target 1:1 to 1.5:1 risk/reward as a minimum
- If both buy and sell stops trigger, close both — it's a whipsaw day
- Best results on EUR/USD, GBP/USD, and EUR/GBP
Examples
EUR/USD London Breakout
Asian range: 1.0850-1.0880 (30 pips). At 07:00 GMT, EUR/USD breaks above 1.0880 with a strong bullish candle. Entry at 1.0882, stop at 1.0848, target 1.0912 (1:1 RR).
GBP/USD NY Session Breakout
London session creates a range between 1.2700-1.2740. At NY open (13:00 GMT), GBP/USD breaks below 1.2700. Short with stop above 1.2740, target 1.2660.
Related Tool
Position Size Calculator