muthusai2000 i’m a new follower to this so I may be mistaken but I live in the UK and it is currently 7:57 am, my understanding was that this system is to catch the breakout of London which opens at 8am uk time. so how come in the above you have already entered and exited? is it because the above is the Eur market and therefore you trade an hour earlier?
Hi,
Welcome to this thread. I am trading early breakouts. That is the reason for my early entry. If you are new, feel free to stick by the rules as stated in the first page and you might want to experiment as you move on. Just my suggestion.
Regards,
Muthu.
thanks for the quick response and the explanation. I just thought i had misunderstood the timings.
Welcome. You are fine in your understanding.
Regards,
Muthu.
Thanks! I have followed the rules of the game and made huge turnover in days. Its wonderful.
muthusai, what times do you trade breakouts (london times please) as watching this today the market was highly volatile when news came out at 9:30am ideally its best not to be in the market when this news is released.
also just as confirmation in your charts this morning I can’t see where you started your lines from i.e. the prev swing hi / lo can you just confirm the prices and times of them for me.
i understand the main theory of the system i’m just trying to now grasp the refinements and looks like you have been profiting from it recently.
thanks
Let credits go to the inventor of this system 
Hi,
At the close of 0500 GMT (I believe it falls in line with London time), I draw my trendlines. Today’s trade was bit different as prev day’s high was already broken before our trendline drawing time by euro. Hence I decided to take day before’s high and low points to draw trendlines. Remember there is no right/wrong way of drawing trendlines. As long as the trendline connects number of peaks/valleys on its path, I consider it realiable. Hence I drew it like i did today. White rounds marks the points, the trendlines connected on its way. Not all days are same and tomorrow may be different and I will only know when i get close to close of 0500 candle. There were days when volume was high and i decided to trade earlier than this. All trades taken are here on this thread for you to have a look.
Hope this helps !
Regards,
Muthu.
Hi Muthu,
Wonderful to see how you make time every day to post your charts. From what I understand -
a) wait till 500 GMT candle closes.
b) Connect current daily high with previous daily high (as long as its a downward sloping line)
c) Connect current daily low with previous daily low (as long as its a upward sloping line)
d) Trade the break
Is my understanding of your method correct?
Questions: What SL method do you use? How do you decide your profit target?
muthu, I notice you always post EU/USD is this the only pair you trade? surely as this is called the London Breakout we should be looking at pairs involving GBP?
Kc0793, with regards to your points b) and c) I think it should be the most recent [B]Swing[/B] high and low not just the highest point, but muthu will be able to confirm.
Finally the US opens at 1pm GMT anyone tried to see if this works trading NY breakout i.e. look at candles 8am, 9am, 10am, 11am and 12pm to enter a trade when us opens at 1pm?
Hi kc0793,
Yes your understanding is correct. Except that it should connect the recent swing high/low of prev day. That is how i am trading this method. Some days when i don’t get valid high/lows of previous day, i want to get the trendline connection the day prior to that. Not all days are the same. Today on my chart, I didnot plot a downward trendline, simply because i found no valid lows of yesterday or day prior. I keep my profit target near fib levels or support/resistance/pivot levels. Ideal profit target is 20 pips for Euro. However when trading against the trend like what it was today when price action broke upper trendline, I might get out of the trade earlier. Stops vary based on candle stick formations. I want to place my stops above/below supp/res/fib levels. However My stops will not go more than 35 pips. Lastly, all trades both win and loss will be posted here.
Regards,
Muthu.
SirSpike:
I find Cable too volatile to handle so i am looking only at Euro for now. I used to trade both not long ago. My work time also comes close to cable open and I am unable to manage my trade at that time. Feel free to experiment with Cable if it suits you. It is a monster no doubt and when tamed it rains pips ! As far US open goes, I have never traded it as i will be working at that time and i believe market is already volatile before NY open and when it opens may be we are looking at trading Explosions more than breakouts ! I will be interested to know if anybody tried it though.
Regards,
Muthu.
1430 gmt
Look up the big dog strategy.
