XAU Session Breakout Strategy — Trade the Gold London Open
An XAU session breakout trades the expansion out of the Asian range, measured between 23:00 and 07:00 UTC, when price closes beyond that range during the London open with volume expanding. Entry is the breakout close or the first retest, the stop sits back inside the range, and targets are 1x and 2x the range height.
The XAU session breakout trades the expansion out of gold's Asian range, measured between 23:00 and 07:00 UTC. Entry is a 15-minute close beyond the range boundary during the London open, with tick volume at least one and a half times the Asian average, or the first retest of the broken boundary.
The stop is structural: back inside the range, at the mid-point on a wide range or $2 to $3 inside the boundary on a tight one, which typically produces a $4 to 0 stop per ounce. Targets are 1x and 2x the range height from the boundary, adjusted for the prior day high and low.
Range height matters as a filter. Under roughly 35% of the 14-day average daily range is tradable and under 25% is ideal; above about 50% the overnight session has usually already delivered the day's movement. Valid windows are 07:00 to 10:00 UTC and 13:00 to 15:00 UTC, and the 21:00 to 23:00 UTC rollover window is never traded.
On the 100-ounce XAUUSD contract a .00 move is 00 per lot, so a $6.20 stop with £125 of risk sizes to roughly 0.20 lots.