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15 Minutes Scalping Strategy for London Open

This strategy is designed to work around the London open and New York open, however the same principle can be applied to the other major opening trading sessions as well. The simplicity of this strategy comes from the fact that it only uses one indicator – the RSI indicator, which will help you spot divergence in prices. This strategy also makes perfect use of the time of the day significance, because the majority of the times the big moves on an intraday basis happens during the opening of the London and New York session. Another major advantage that this strategy gives you the possibility to not be stuck at your screen all day long and to have a better time management.

The 15 Minutes London Open Scalping (Can also be applied to New York Open)

1. Currency Pairs: Preferable GBP/USD and EUR/USD, but works on other pairs as well;
2. Time Frame: 15 Minutes;
3. Indicators: RSI with Period= 14;
4. Define Asia Trading Range: Establish the range from 0:00 GMT to 6:00GMT;
5. BUY Signal: A break below the Asia Range with divergence spotted in RSI is desired to be faded and be bought;
6. SELL Signal: A break above the Asia Range with divergence spotted in RSI is desired to be faded and be sold;
7. Stop Loss for Sell/Buy Trade : 10 Pips above/below the breakout candle;
8. Target for Sell/Buy Trade:
- Option 1: At least 1 standard deviation, but the desirable target would be 2 SD;
- Option 2: Target the 5 Day ATR;

First Example is a long GBP/USD setup right at London Open where we have a false breakout to the downside of the Asia range with spotted RSI divergence which is a BUY trigger signal. Our SL would have been 10pips below the breakout candle and also below the most significant swing low point. The take profit level is calculated as follow you measure the distance in pips of Asia range and project that range to the upside. In our case we have a 25 pips range, which means that a move to the upside of the same magnitude would equal 1 standard deviation.

In our second example we’re going to have a look at some short opportunities in EUR/USD. Once again the breakout of the Asia range in confluence with RSI divergence has produced a nice short opportunity. Our short signal was triggered at the London open once we had the false breakout of the Asia range with spotted RSI bearish divergence. The potential profit on this trade is much bigger as price traveled twice the distance of Asia range and we could have captured a two standard deviation move.

Last but not least we’re going to look into an opportunity that would have not worked out and in this case we’re going to look at USD/JPY. We have breakout of the Asia range with spotted bullish divergence, however, this time around the trade would cause us a loss.
One particular lesson that can be learned from this trade is that whenever we have a wide Asia Trading range, with the market trading heavily on one side it’s best to not trade that pair at all, because key feature to this strategy is the need to have a narrow Asia range.

The 15 min scalping strategy uses only the standard RSI indicator that comes with your standard MT4 trading platform. You really don’t need any fancy indicators to do well with this strategy… or in fact to do well in Forex. Don’t pay too much attention to fancy indicators created by Forex marketers. Practice well with this 15 min scalping strategy and do let us know your success story
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