ICT Daily Profile - London Reversal / New York Continuation

Summary

This video is part one of a four-part series on daily profiles, focusing on the London reversal. It explains how market sessions and kill zones, particularly from 2-5 AM London and 8:30-12 PM New York, create price reversals and continuations. The video details bullish and bearish London reversals, showing how the London session sets the daily candle's direction, followed by the New York session's continuation. Examples of real market charts, such as oil and ES, demonstrate the concept, highlighting market structure shifts and trade opportunities.

Takeaways

• 📊 The video is part one of a four-part series on daily profiles, focusing on the London reversal pattern.
• 🕒 The London reversal occurs during the 2:00-5:00 AM session and is often followed by a New York continuation between 8:30 AM to 12:00 PM.
• 📉 A London reversal involves the price opening, creating a wick by moving lower (for bullish cases) or higher (for bearish cases), and then reversing direction.
• 🔄 The reversal is identified by a change in market structure or state of delivery, which signals a potential shift for New York session continuation.
• 🛠️ Bullish London reversals involve manipulation lower before reversing up, while bearish reversals involve manipulation higher before dropping.
• 🛑 New York session often follows the London reversal, leading to a continuation of the trend established by the London move.
• 📈 In the examples provided, London creates a reversal wick on the daily chart, and New York continues the movement in the same direction.
• 🔍 Examples on various timeframes (15-minute and 30-minute) show how the London reversal forms and is followed by a continuation during New York's session.
• 📉 The video illustrates using order blocks, propulsion blocks, and changes in the state of delivery to trade the New York continuation.
• 🎯 Important time markers like 8:30 AM, 9:30 AM, and 10:00 AM are used to identify key moments during the New York session, assisting in trade setups and continuation moves.

Q & A

What are 'daily profiles' in the context of the video?

Daily profiles refer to patterns that traders analyze during specific trading sessions, such as London and New York, to predict market movements throughout the day.

What are the 'sessions' and 'kill zones' mentioned in the video?

The sessions refer to different trading periods such as Asia, London, and New York. Kill zones are specific time windows within these sessions where significant price movements or reversals are likely to occur. The video focuses on London from 2:00 to 5:00 a.m. and New York from 8:30 to 12:00 p.m.

What is a 'London reversal'?

A London reversal is a market phenomenon where the price first moves in one direction during the London session (between 2:00 to 5:00 a.m.) and then reverses in the opposite direction, setting up a continuation into the New York session.

How does the concept of 'market structure shift' relate to the London reversal?

A market structure shift occurs when the price changes direction, indicating a reversal. During a London reversal, this shift often happens between 2:00 and 5:00 a.m., which leads to a continuation in the New York session.

What is the role of the New York session in relation to the London reversal?

The New York session typically continues the price movement initiated by the London reversal. For example, if the London session creates a bullish reversal, the New York session will likely follow with a continuation of that upward trend.

What is meant by 'internal liquidity' in the video?

Internal liquidity refers to levels in the market where there are clusters of buy or sell orders. In the video, the trader uses internal liquidity as a target for price movements during the continuation phase after a London reversal.

What is an 'order block' as described in the video?

An order block is a zone on the chart where large buy or sell orders were previously placed. In the context of this video, the price often returns to and interacts with these zones during retracements or continuations.

What is the importance of the 'propulsion block' mentioned in the strategy?

A propulsion block is a price zone that acts as support or resistance after the price has moved away from it. In the video, it is used to identify potential areas for price retests and continuations.

What are the key time levels to watch during the New York session?

Key time levels to watch during the New York session are 8:30 a.m. and 9:30 a.m. These are significant moments for price manipulation, often leading to retracements or continuations of trends set during the London session.

How does the video recommend using multiple time frames for analysis?

The video suggests analyzing multiple time frames, such as the 15-minute and 30-minute charts, to confirm patterns like the London reversal and to spot opportunities for entry or continuation during the New York session.