In order to understand the system known as London Forex Rush, it is necessary to understand that this system works on the Open Range Breakout formula that has been a constant in forex trading for generations. The Open Range Breakout formula is one in which a trader watches market movement and calculates the highs and lows before the trader decides to connect with the prevailing breakout trend, which can move in either direction.

The London market, which is the highest forex trading market in the world, opens at 3 am EST or 8 am London time. The Tokyo market, which is the smallest trading market in forex among the big three, (London, Tokyo and New York) closes between 2 and 3 am EST. For one hour between 3 and 4 am EST the Tokyo and London market overlaps.

By watching the volatility of the Tokyo market, a trader knows to watch the trends on the London exchange in the first two hours of trading. If the Tokyo market has been at an even level with no real volatility and the London market breaks either way into a volatile charge, a trader knows, having set his stop loss, it is safe to trade. If there is no volatility in the Tokyo market and none in the first few hours after the London market opens, a trader should turn off the computer and wait for another day.

Most experts advise that traders time the trailing of their stop loss to the first few hours of the opening of the New York market, which is the second largest forex trading market among the big three. In the opening hours of the New York market, often a break out trade will develop that can determine the forex trend for the day.