The Tokyo to London handover is where range breaks get fake
Posted: Sat Oct 31, 2026 7:33 am
European traders arrive around 7 or 8 am London time, and the Asian session range that built up overnight suddenly faces fresh order flow. That is why so many breakouts happen right at the handover, and why so many reverse inside minutes.
Asian ranges tend to be tight and tidy. A tidy range invites obvious breakout orders, and obvious levels attract stop runs. London opens, price pokes above the high, triggers the buy stops, then reverses back into the range once those orders are exhausted.
Not every poke is fake. Real breakouts usually come with a sustained increase in tick activity and a spread that stays tight. Fake ones often show a brief burst, then fading activity, and a quick return below the level.
A cautious approach is waiting for the first 15 to 30 minutes of London to pass, then trading the direction that survives a retest. It misses a few clean runs, but it also avoids a lot of fake-outs.
How are London open breakouts handled, early entry, retest entry, or staying out completely?
Asian ranges tend to be tight and tidy. A tidy range invites obvious breakout orders, and obvious levels attract stop runs. London opens, price pokes above the high, triggers the buy stops, then reverses back into the range once those orders are exhausted.
Not every poke is fake. Real breakouts usually come with a sustained increase in tick activity and a spread that stays tight. Fake ones often show a brief burst, then fading activity, and a quick return below the level.
A cautious approach is waiting for the first 15 to 30 minutes of London to pass, then trading the direction that survives a retest. It misses a few clean runs, but it also avoids a lot of fake-outs.
How are London open breakouts handled, early entry, retest entry, or staying out completely?