Let me try to summarize a bit. This is a mix between CJ method & Steve Mauro. Used on M15.
1. Grab the asian range. Generally between 15 to 50 pips. This is the accumulation phase on low volumes.
2. Around London open, mark the asian hi/low range.
3. Wait for the asian breakout, no matter if it is to the upside or downside, you don't care
4. After 30 to 90min, mark the LOD/HOD (low of the day, high of the day).
5. Price will retrace a bit, now look for "M" or "W" patterns.
6. Enter short at the top, long at the bottom at the second retest. Look also for patterns like pin's, rrt, hanging man, etc in the M & W zones.
7. If all is ok you should be in profit.
8. Breakout traders are trapped in their breakout thing. They are now hoping the price will go at least at their entry price to exit at BE ... but price is now ranging, they are stuck ...
9. One hour after, the trend will resume and the price will be begin to drift in your direction forcing breakout trader to close their order, this will also accelerate the move.
Be careful between London & NY close, there should be a pullback if the range was big. This keeps a bit a the volume and money for the next day.
So, take your short position from the HOD and long position from the LOD after a M or W pattern. Stoploss should be above the highs or lows (give enough room to avoid getting trapped by broker spread widening)
If the price sky rocket to the upside or downside & you don't see a pullback nor a M or W after the breakout, too bad for that one. Go hunting on another pair =)
