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Pre-London High-Low Breakout Indicator

Overview
The Pre-London High-Low Breakout Indicator helps traders identify breakout opportunities at the London session open. It marks the high and low one hour before London opens (5 PM - 6 PM AEST) and incorporates a 200 SMA filter to confirm trade direction. The indicator also provides real-time breakout markers for precise entries.
How the Indicator Works
1. Pre-London High & Low Identification (5 PM - 6 PM AEST)
2. 200 SMA as a Trend Filter
3. Real-Time Breakout Confirmation
How to Use the Indicator Properly
Step 1: Identify the Pre-London Range (5 PM - 6 PM AEST)
Step 2: Wait for a Breakout After 6 PM AEST
Step 3: Confirm with the 200 SMA
Step 4: Enter the Trade and Manage Risk
Why This Strategy Works
Final Notes
This setup is ideal for traders looking for a structured, rule-based approach to trading London session breakouts with a strong trend confirmation mechanism.
The Pre-London High-Low Breakout Indicator helps traders identify breakout opportunities at the London session open. It marks the high and low one hour before London opens (5 PM - 6 PM AEST) and incorporates a 200 SMA filter to confirm trade direction. The indicator also provides real-time breakout markers for precise entries.
How the Indicator Works
1. Pre-London High & Low Identification (5 PM - 6 PM AEST)
- [] The indicator tracks the highest and lowest price levels within this period.
[] These levels act as key breakout zones once London opens. - The high and low remain visible until 12 AM AEST for reference.
2. 200 SMA as a Trend Filter
- [] A 200 SMA (yellow, thick line) is plotted to filter breakout trades.
[] Only long (buy) trades are valid if price is above the 200 SMA. - Only short (sell) trades are valid if price is below the 200 SMA.
3. Real-Time Breakout Confirmation
- [] Buy Signal (Green Diamond):
[] Price breaks above the pre-London high.
[] Price is above the 200 SMA.
[] Sell Signal (Red Diamond):
[] Price breaks below the pre-London low.
[] Price is below the 200 SMA. - No signal appears if the breakout is against the SMA trend, reducing false trades.
How to Use the Indicator Properly
Step 1: Identify the Pre-London Range (5 PM - 6 PM AEST)
- [] Observe price movements and note the session high & low.
[] Do not take trades within this period—wait for a clear breakout.
Step 2: Wait for a Breakout After 6 PM AEST
- [] A breakout must occur beyond the session high or low.
[] The breakout should be clear and decisive, not hovering around the range.
Step 3: Confirm with the 200 SMA
- [] If price is above the 200 SMA, only buy signals are valid.
[] If price is below the 200 SMA, only sell signals are valid. - If a breakout occurs against the SMA, ignore it.
Step 4: Enter the Trade and Manage Risk
- [] Enter the trade after the breakout candle closes.
[] Set stop-loss just inside the pre-London range to minimize risk. - Take profit using a 1:2 or 1:3 risk-reward ratio, or trail the stop.
Why This Strategy Works
- [] Pre-London Liquidity Grab: Institutional traders set positions before the London open, making this range significant.
[] Trend Confirmation with SMA: Reduces false breakouts by filtering trades in the direction of the trend. - Real-Time Breakout Detection: Green and red diamond markers highlight valid breakouts that meet all conditions.
Final Notes
- [] If price breaks out but quickly reverses, it may be a false breakout—avoid impulsive trades.
[] The indicator works best when combined with other confluences such as volume analysis or key support/resistance levels. - Alerts can be added to notify traders when a valid breakout occurs.
This setup is ideal for traders looking for a structured, rule-based approach to trading London session breakouts with a strong trend confirmation mechanism.
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開源腳本
本著TradingView的真正精神,此腳本的創建者將其開源,以便交易者可以查看和驗證其功能。向作者致敬!雖然您可以免費使用它,但請記住,重新發佈程式碼必須遵守我們的網站規則。
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。